2007 Oregon Code - Chapter 100 :: Chapter 100 - Condominiums
Chapter 100 —
Condominiums
2007 EDITION
CONDOMINIUMS
PROPERTY RIGHTS AND TRANSACTIONS
GENERAL PROVISIONS
100.005Â Â Â Â Definitions
100.010Â Â Â Â Short
title
100.015Â Â Â Â Rules
100.020Â Â Â Â Condominium
provisions; restrictions
100.025Â Â Â Â Rule
against perpetuities; inapplicable
CREATION OF UNIT OWNERSHIP
100.100Â Â Â Â Property
submitted to unit ownership by declaration; executors of declaration; conflict
between this chapter and ORS chapter 65
100.102Â Â Â Â Leasehold
condominium submitted to unit ownership
100.103Â Â Â Â Effect
of submission of leasehold condominium to unit ownership
100.105Â Â Â Â Contents
of declaration; property name; variable property description
100.110Â Â Â Â Approval
of declaration, supplemental declaration or amendment required; prerequisites;
fee
100.115Â Â Â Â Recording
declaration and plat; plat contents; supplemental declaration and plat;
approval of declaration and plat amendments; fees
100.120Â Â Â Â Supplemental
declaration and plat required to annex additional property or reclassify
variable property; termination date
100.122Â Â Â Â Declaration
prevails over inconsistent provisions of bylaws or articles of incorporation
100.123Â Â Â Â Authority
to amend declaration or bylaws to comply with federal or state law
100.125Â Â Â Â Annexation
of additional property; requirements
100.130Â Â Â Â Relocation
of unit boundaries and common elements by amendment to declaration
100.135Â Â Â Â Amendments
to declaration; requirements; procedure
100.140Â Â Â Â Temporary
relocation of floating structure; security interests upon termination of
condominium
FLEXIBLE CONDOMINIUMS
100.150Â Â Â Â DeclarantÂ’s
options until termination date
100.155Â Â Â Â Variable
property; uses and restrictions
RIGHTS AND DUTIES OF DECLARANT
100.170Â Â Â Â Easement
held by declarant
100.175Â Â Â Â Reserve
account for maintaining, repairing and replacing common elements; reserve
study; maintenance plan
WARRANTIES ON NEW UNITS
100.185Â Â Â Â Express
warranties; form; exclusion of implied warranties; exemption for consumer
products; claims
DECLARANT CONTROL; TURNOVER
100.200Â Â Â Â Declarant
control of association
100.205Â Â Â Â Transitional
committee; notice of meeting for formation
100.210Â Â Â Â Turnover
meeting; notice; transfer of control
SPECIAL DECLARANT RIGHTS
100.220Â Â Â Â Liabilities
and obligations arising from transfer of special declarant right; exemptions
100.225Â Â Â Â Acquisition
of special declarant rights by successor declarant; exceptions
DOCUMENT FILING
100.250Â Â Â Â Documents
required to be filed with Real Estate Agency; fees
100.255Â Â Â Â Processing
of documents filed with Real Estate Agency; procedures
100.260Â Â Â Â Condominium
Information and Annual Reports; contents; fees
100.265Â Â Â Â Annual
Report; notification; filing
100.275Â Â Â Â Application
of ORS 100.250 to 100.280
100.280Â Â Â Â Termination
of filing Condominium Information Report
100.285Â Â Â Â Resignation
of designated agent; procedures; effective date
100.290Â Â Â Â Rules
CONVERSION CONDOMINIUMS
100.300Â Â Â Â Inapplicability
of ORS 100.301 to 100.320 to transient lodgings
100.301Â Â Â Â Definitions
for ORS 100.301 to 100.320
100.305Â Â Â Â Conversion
condominium; notice
100.310Â Â Â Â Rights
of tenants in conversion
100.315Â Â Â Â Improvements
in conversion condominium during notice period
100.320Â Â Â Â Authority
of city or county to require developer to pay tenant moving expenses
ASSOCIATION OF UNIT OWNERS; MANAGEMENT OF PROPERTY; ENCUMBRANCES;
CONVEYANCES
100.405Â Â Â Â Association
of unit owners; powers; granting of interest in common elements; dispute
resolution
100.407Â Â Â Â Annual
and special meetings of association
100.408Â Â Â Â Quorum
for meeting of association
100.409Â Â Â Â Rules
of order
100.410Â Â Â Â Adoption
of bylaws; recording; amendment; approval by commissioner; fee
100.412Â Â Â Â Annual
budget; distribution of budget summary to owners
100.415Â Â Â Â Contents
of bylaws
100.417Â Â Â Â Board
of directors of association; powers and duties
100.418Â Â Â Â Receivership
for failure of association to fill vacancies on board of directors
100.419Â Â Â Â Assent
of director to board action
100.420Â Â Â Â Board
meetings; executive sessions
100.423Â Â Â Â Electronic
notice to owner or director
100.425Â Â Â Â Use
of written ballot for approving or rejecting matters subject to meeting of unit
owners; procedures; exceptions
100.427Â Â Â Â Methods
of voting
100.428Â Â Â Â Electronic
ballot
100.430Â Â Â Â Unit
deeds; contents
100.435Â Â Â Â Insurance
for individual units and common elements
100.440Â Â Â Â Liens
against property; removal from lien; effect of part payment
100.445Â Â Â Â Independent
default clauses; option to purchase fee simple interest
100.450Â Â Â Â Association
lien against individual unit; recording notice of claim; foreclosure; priority
of lien
100.460Â Â Â Â Foreclosure
against unit; receiver for unit; power of board of directors to bid at
foreclosure sale
100.465Â Â Â Â Circumstances
in which deed in lieu of foreclosure extinguishes lien
100.470Â Â Â Â Lien
foreclosure; other legal action by declarant, association or owner; attorney
fees
100.475Â Â Â Â Personal
liability for assessment; joint liability of grantor and grantee following conveyance;
limitation
100.480Â Â Â Â Maintaining
documents and records; annual financial statement; review of financial
statement by certified public accountant; availability of documents and records
for examination
100.485Â Â Â Â Duration
and termination of initial management agreements and service and employment
contracts; applicability of federal condominium law
100.490Â Â Â Â Notice
to unit owners of intent of association to commence judicial or administrative
proceedings; contents of notice; right of unit owner to opt out
ATTRIBUTES AND DUTIES OF OWNERSHIP
100.505Â Â Â Â Status
and ownership of units
100.510Â Â Â Â Units
and common elements distinguished
100.515Â Â Â Â Interest
of units in common elements
100.520Â Â Â Â Easement
held by units and common elements
100.525Â Â Â Â Voting
or consenting
100.530Â Â Â Â Allocation
of common profits and expenses; liability of unit owner; limitation on
assessments against declarant; deferral of assessments by declarant
100.535Â Â Â Â Maintenance
and improvement of units
100.540Â Â Â Â Use
and maintenance of common elements; access for maintenance
100.545Â Â Â Â Compliance
with bylaws and other restrictions
100.550Â Â Â Â Service
of process
100.555Â Â Â Â Taxation
of units; exemptions; uniform appraisal and assessment; rules
REMOVAL OF PROPERTY FROM UNIT OWNERSHIP
100.600Â Â Â Â Termination
of association or removal of real property by unit owners; consent of
lienholders; recordation; amended plat requirements
100.605Â Â Â Â Removal
of property from association; repair or removal of property that is damaged or
destroyed
100.610Â Â Â Â Common
ownership of property removed from unit ownership; valuation; liens
100.615Â Â Â Â Action
for partition; division of sale proceeds
100.620Â Â Â Â Termination
or removal no bar to resubmission
DIVIDING OR CONVERTING UNITS
100.625Â Â Â Â Procedure
for dividing or converting units
REGULATION OF SALES; FILING REQUIREMENTS
100.635Â Â Â Â Filing
with commissioner; fee
100.640Â Â Â Â Filing;
required documents and information
100.645Â Â Â Â Filing
information to be kept current
100.650Â Â Â Â Service
of process on nonresident developer; consent for service on commissioner; contents
of consent; records of service on commissioner
100.655Â Â Â Â Disclosure
statement; contents; disclosure statement from other state; declarant liability
limited
100.660Â Â Â Â Nonresidential
condominium or security filing; contents
100.665Â Â Â Â Exemption
to certain disclosure and notice requirements
100.670Â Â Â Â Fees;
hourly rate; deposit
100.675Â Â Â Â Inventory;
review; approval; timelines
100.680Â Â Â Â Escrow;
sales agreement; requirements
INSPECTION OF CONDOMINIUM; DISCLOSURE
STATEMENT
100.700Â Â Â Â Inspection
of condominium; report in disclosure statement
100.705Â Â Â Â
100.710Â Â Â Â Inspection
deposit
REQUIREMENTS FOR
100.720Â Â Â Â Conditions
prerequisite to sale
100.725Â Â Â Â Documents
prerequisite to execution of sale agreement and conveyance of unit
100.730Â Â Â Â Cancellation
of sale of unit; notice to seller; return of payments and reconveyance;
extinguishment of encumbrances; waiver prohibited; disclaimer of notice;
applicability
100.735Â Â Â Â Waiver
of right to cancel
100.740Â Â Â Â Notice
to purchaser of cancellation rights; form
100.745Â Â Â Â Escrow
documents required of successor to vendorÂ’s interest
100.750Â Â Â Â Inspection
of records
PROHIBITED ACTS
100.770Â Â Â Â Fraud
and deceit prohibited
100.775Â Â Â Â False
or misleading advertising prohibited; liability
100.780Â Â Â Â Waiver
of legal rights void
100.785Â Â Â Â Blanket
encumbrance prohibited
ENFORCEMENT
100.900Â Â Â Â Civil
penalty
100.905Â Â Â Â Cease
and desist order; injunction
100.910Â Â Â Â Use
of fees
CRIMINAL PENALTIES
100.990Â Â Â Â Criminal
penalties
GENERAL PROVISIONS
     100.005
Definitions. As used in this
chapter, unless the context requires otherwise:
     (1) “Assessment” means any charge imposed
or levied by the association of unit owners on or against a unit owner or unit
pursuant to provisions of the declaration or the bylaws of the condominium or
provisions of ORS 100.005 to 100.910.
     (2) “Association of unit owners” means the
association provided for under ORS 100.405.
     (3) “Association property” means any real
property or interest in real property acquired, held or possessed by the
association under ORS 100.405.
     (4) “Blanket encumbrance” means a trust
deed or mortgage or any other lien or encumbrance, mechanicÂ’s lien or
otherwise, securing or evidencing the payment of money and affecting more than
one unit in a condominium, or an agreement affecting more than one such unit by
which the developer holds such condominium under an option, contract to sell or
trust agreement.
     (5) “Building” means a multiple-unit
building or single-unit buildings, or any combination thereof, comprising a
part of the property. “Building” also includes a floating structure described
in ORS 100.020 (3)(b)(D).
     (6) “Commissioner” means the Real Estate
Commissioner.
     (7) “Common elements” means the general common
elements and the limited common elements.
     (8) “Common expenses” means:
     (a) Expenses of administration,
maintenance, repair or replacement of the common elements;
     (b) Expenses agreed upon as common by all
the unit owners; and
     (c) Expenses declared common by ORS
100.005 to 100.625 or by the declaration or the bylaws of the particular
condominium.
     (9) “Condominium” means:
     (a) With respect to property located
within this state:
     (A) The land, if any, whether fee simple,
leasehold, easement or other interest or combination thereof, and whether
contiguous or noncontiguous;
     (B) Any buildings, improvements and
structures on the property; and
     (C) Any easements, rights and
appurtenances belonging to the property submitted to the provisions of ORS
100.005 to 100.625; and
     (b) With respect to property located
outside this state, the property that has been committed to the condominium
form of ownership in accordance with the jurisdiction within which the property
is located.
     (10) “Conversion condominium” means a
condominium in which there is a building, improvement or structure that was
occupied prior to any negotiation and that is:
     (a) Residential in nature, at least in
part; and
     (b) Not wholly commercial or industrial,
or commercial and industrial, in nature.
     (11) “Declarant” means a person who
records a declaration under ORS 100.100 or a supplemental declaration under ORS
100.110.
     (12) “Declaration” means the instrument
described in ORS 100.100 by which the condominium is created and as modified by
any amendment recorded in accordance with ORS 100.135 or supplemental
declaration recorded in accordance with ORS 100.120.
     (13) “Developer” means a declarant or any
person who purchases an interest in a condominium from declarant, successor
declarant or subsequent developer for the primary purpose of resale.
     (14) “Flexible condominium” means a
condominium containing property that may be reclassified or withdrawn from the
condominium pursuant to ORS 100.150 (1).
     (15) “General common elements,” unless
otherwise provided in a declaration, means all portions of the condominium that
are not part of a unit or a limited common element, including but not limited
to the following:
     (a) The land, whether fee simple,
leasehold, easement, other interest or combination thereof, together with any
rights and appurtenances;
     (b) The foundations, columns, girders,
beams, supports, bearing and shear walls, windows, except glazing and
screening, unit access doors, except glazing and screening, roofs, halls,
corridors, lobbies, stairs, fire escapes, entrances and exits of a building;
     (c) The basements, yards, gardens, parking
areas and outside storage spaces;
     (d) Installations of central services such
as power, light, gas, hot and cold water, heating, refrigeration, air conditioning,
waste disposal and incinerating;
     (e) The elevators, tanks, pumps, motors,
fans, compressors, ducts and in general all apparatus and installations
existing for common use;
     (f) The premises for the lodging of
janitors or caretakers of the property; and
     (g) All other elements of a building and
the condominium necessary or convenient to their existence, maintenance and
safety, or normally in common use.
     (16) “Leasehold” means the interest of a
person, firm or corporation who is the lessee under a lease from the owner in
fee and who files a declaration creating a condominium under ORS 100.100.
     (17) “Limited common elements” means those
common elements designated in the declaration, as reserved for the use of a
certain unit or number of units, to the exclusion of the other units.
     (18) “Majority” or “majority of unit
owners” means more than 50 percent of the voting rights allocated to the units
by the declaration.
     (19) “Mortgagee” means any person who is:
     (a) A mortgagee under a mortgage;
     (b) A beneficiary under a trust deed; or
     (c) The vendor under a land sale contract.
     (20) “Negotiation” means any activity
preliminary to the execution by either developer or purchaser of a unit sales
agreement, including but not limited to advertising, solicitation and promotion
of the sale of a unit.
     (21) “Nonwithdrawable property” means
property which pursuant to ORS 100.150 (1)(b):
     (a) Is designated nonwithdrawable in the
declaration and on the plat; and
     (b) Which may not be withdrawn from the
condominium without the consent of all of the unit owners.
     (22) “Percent of owners” or “percentage of
owners” means the percent of the voting rights determined under ORS 100.525.
     (23) “Purchaser” means an actual or
prospective purchaser of a condominium unit pursuant to a sale.
     (24) “Recording officer” means the county
officer charged with the duty of filing and recording deeds and mortgages or
any other instruments or documents affecting the title to real property.
     (25) “Reservation agreement” means an
agreement relating to the future sale of a unit which is not binding on the
purchaser and which grants purchaser the right to cancel the agreement without
penalty and obtain a refund of any funds deposited at any time until purchaser
executes a unit sales agreement.
     (26) “
     (27) “Special declarant right” means any
right, in addition to the regular rights of the declarant as a unit owner, reserved
for the benefit of or created by the declarant under the declaration, bylaws or
the provisions of this chapter.
     (28) “Staged condominium” means a
condominium which provides for annexation of additional property pursuant to
ORS 100.115 and 100.120.
     (29) “Successor declarant” means the
transferee of any special declarant right.
     (30) “Termination date” means that date
described in ORS 100.105 (2)(b) or (7)(d).
     (31) “Transitional committee” means the
committee provided for under ORS 100.205.
     (32) “Turnover meeting” means the meeting
provided for under ORS 100.210.
     (33) “Unit” or “condominium unit” means a
part of the property which:
     (a) Is described in ORS 100.020 (3);
     (b) Is intended for any type of
independent ownership; and
     (c) The boundaries of which are described
pursuant to ORS 100.105 (1)(d).
     (34) “Unit designation” means the number,
letter or combination thereof designating a unit in the declaration and on the
plat.
     (35) “Unit owner” means, except to the
extent the declaration or bylaws provide otherwise, the person owning fee
simple interest in a unit, the holder of a vendeeÂ’s interest in a unit under a
recorded installment contract of sale and, in the case of a leasehold
condominium, the holder of the leasehold estate in a unit.
     (36) “Unit sales agreement” means a
written offer or agreement for the sale of a condominium unit which when fully
executed will be binding on all parties. “Unit sales agreement” includes but is
not limited to an earnest money receipt and agreement to purchase and other
such agreements which serve as an agreement of sale for a cash transaction or
which are preliminary to the execution of an installment contract of sale, but
does not include a reservation agreement.
     (37) “Variable property” means property
described in ORS 100.150 (2) and designated as variable property in the
declaration and on the plat.
     (38) “Voting rights” means the portion of
the votes allocated to a unit by the declaration in accordance with ORS 100.105
(1)(j). [Formerly 94.004; 1997 c.816 §1; 1999 c.677 §38; 2001 c.756 §24; 2007
c.410 §5]
     100.010
Short title. This chapter
may be cited as the Oregon Condominium Act. [Formerly 94.011]
     100.015
Rules. The Real Estate
Commissioner may adopt such rules as are necessary for the administration of
this chapter. [Formerly 94.333]
     Note: 100.015 was added to and made a part of
100.635 to 100.910 by legislative action but was not added to any other series.
See Preface to Oregon Revised Statutes for further explanation.
     100.020
Condominium provisions; restrictions. (1) Except as otherwise provided in subsections (2) and (3) of this
section, ORS 100.100 to 100.625 apply only to property located within this
state which a person elects to submit to the condominium form of ownership as
provided in ORS 100.005 to 100.625.
     (2) Unless the declarant elects otherwise,
ORS 100.175, 100.185, 100.200 (2), 100.205, 100.210, 100.300, 100.305, 100.310,
100.315 and 100.320 apply only to condominiums that include units to be used
for residential purposes.
     (3) Property may not be submitted to the
condominium form of ownership under ORS 100.005 to 100.625 unless:
     (a) Each unit has legal access to a public
street or highway or, if the unit has such access only by virtue of common
ownership with other units, the declaration executed under ORS 100.110
prohibits conveyance of the unit unless after conveyance the unit will continue
to have legal access to a public street or highway;
     (b) Subject to paragraph (c) of this
subsection, each unit consists of:
     (A) A building or part of a building;
     (B) A space used for the parking or
storage of automobiles, trucks, boats, campers or other vehicles or equipment;
     (C) A space for the moorage of a
watercraft, floating home or other structure; or
     (D) A floating structure, including a
structure formerly used as a ship or other vessel that:
     (i) Is permanently moored to structures in
a river, lake or other waterway pursuant to a long-term lease with a remaining
term at the time the declaration and plat are recorded of not less than 15 years;
     (ii) Contains two or more residential
units with a combined floor space of not less than 2,000 square feet; and
     (iii) Has upland common elements owned in
fee or by leasehold having a remaining term of not less than the remaining term
of the leasehold on the submerged or submersible land. The units in a
condominium described in this subparagraph shall be considered real property
for purposes of the Oregon Condominium Act; and
     (c) Each unit has an interest in the
common elements in accordance with ORS 100.515. However, a unit may not include
any portion of the land. A declaration may not provide that there are no common
elements.
     (4)(a) Except as otherwise provided in
subsection (5) of this section, ORS 100.015 and 100.635 to 100.910 apply to
condominiums having units to be used for residential purposes which are not
offered for sale as a security pursuant to ORS 59.005 to 59.451.
     (b) ORS 100.635 (2), 100.640 (8) to (12),
100.655, 100.705, 100.720, 100.725, 100.730, 100.735, 100.740 and 100.745 do not
apply to the sale of units to be used for nonresidential purposes unless the
units, including units used for parking or storage, are ancillary to the sale
of units to be used for residential purposes.
     (5) ORS 100.650, 100.660, 100.670,
100.675, 100.750, 100.770, 100.775, 100.780, 100.900, 100.905 and 100.990 apply
to a condominium located in this state that consists exclusively of units to be
used for nonresidential purposes or that consists of units to be offered for
sale as a security under ORS 59.005 to 59.451.
     (6) The units in a condominium described
in subsection (3)(b)(C) and (D) of this section shall be considered real
property for purposes of this chapter.
     (7) Unless the declaration or bylaws
provide otherwise, a condominium unit may be submitted to the condominium form
of ownership under ORS 100.005 to 100.625. [Formerly 94.013; 1997 c.816 §2;
1999 c.677 §39; 2001 c.756 §25; 2007 c.410 §6]
     100.025
Rule against perpetuities; inapplicable. The rule against perpetuities may not be applied to defeat any
provisions of a declaration, supplemental declaration, bylaw or rule for a
condominium adopted under ORS 100.005 to 100.625. [Formerly 94.016]
CREATION OF
UNIT OWNERSHIP
     100.100
Property submitted to unit ownership by declaration; executors of declaration;
conflict between this chapter and ORS chapter 65. (1) In order to submit any property to the
provisions of this chapter, the declarant shall record a declaration in the
office of the recording officer of every county in which such property is located.
The declaration shall comply with ORS 100.105 and shall be executed in
accordance with subsection (2) of this section and acknowledged in the manner
provided for acknowledgment of deeds.
     (2) If the declarant is not the fee owner
of the property, the fee owner and the vendor under any instrument of sale
shall also execute the declaration for the purpose of consenting to the
property being submitted to the provisions of this chapter.
     (3) If the condominium contains any
variable property, the holder of any mortgage or trust deed shall also execute
the declaration for the purpose of consenting to the property being submitted
to the provisions of ORS 100.005 to 100.625 and the terms and conditions of the
declaration and bylaws.
     (4) A flexible or staged condominium may
be created only as provided in ORS 100.005 to 100.625.
     (5) The provisions of and rights conferred
by ORS 100.005 to 100.910 shall not be varied or waived except as expressly
provided in those statutes. A declarant shall not act under a power of attorney
or use any other device to evade the limitations or prohibitions in the
declaration, bylaws or ORS 100.005 to 100.910.
     (6) If the provisions of this chapter and
the provisions of ORS chapter 65 apply to an association and the provisions conflict,
the provisions of this chapter control. [Formerly 94.023; 2003 c.569 §22]
     100.102
Leasehold condominium submitted to unit ownership. (1) The owner of fee title interest in the
real property underlying a leasehold condominium may submit the fee title to
the provisions of this chapter by the procedures set forth in this section.
Submission has the effect set forth in ORS 100.103.
     (2) The fee title interest of a leasehold
condominium may be submitted to the provisions of this chapter by an amendment
to the declaration. The amendment must:
     (a) Include a reference to the recording
index numbers and date of recording of the initial declaration, supplemental
declarations recorded pursuant to ORS 100.120 and the lease;
     (b) State that the fee title interest in
the real property subject to the leasehold is submitted to the provisions of
this chapter pursuant to this section;
     (c) State that the submission of the fee
title interest in the real property subject to the leasehold to the provisions
of this chapter has the effect set forth in ORS 100.103;
     (d) State that there are no encumbrances
against the fee title interest securing payment of moneys except for the
assessments of the owners association that are not yet due;
     (e) Be approved by at least 75 percent of
the unit owners, notwithstanding that the declaration may require approval by a
larger percentage of owners or the consent of another person to amend the
declaration;
     (f) Be executed by the fee title holder
and the chairperson and secretary of the association and acknowledged in the
manner provided for acknowledgment of instruments;
     (g) Be certified by the chairperson and
secretary as being adopted in accordance with this section;
     (h) Be approved as required by ORS
100.110; and
     (i) Be recorded in the office of the
recording officer of each county in which the condominium is located.
     (3) At the time of submission, the fee
title interest being submitted may not be subject to an encumbrance securing
payment of money except for the assessments of an association that are not yet
due.
     (4) Nothing in this section precludes the
declarant of a leasehold condominium, the unit owners and the association from
agreeing to other procedures for submitting the fee title interest to the
provisions of this chapter, provided the procedures are set forth in:
     (a) The declaration; or
     (b) An amendment to the declaration
approved by at least 75 percent of the unit owners or, if a larger percentage
is specified in the declaration to effect amendments to the declaration, the
larger percentage, and 75 percent of the lenders holding a first-priority
security position in any unit in the condominium. [2003 c.569 §43; 2007 c.410 §7]
     Note: 100.102 and 100.103 were added to and made a
part of ORS chapter 100 by legislative action but were not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     100.103
Effect of submission of leasehold condominium to unit ownership. (1) After an amendment submitting the fee
title interest underlying a leasehold condominium has been recorded as provided
in ORS 100.102:
     (a) The leasehold or leaseholds affecting
the fee title interest of the land underlying the condominium property must be
converted to individual leaseholds of the units;
     (b) The former owner of the underlying fee
title interest of the condominium property shall become the holder of the fee
title interest to all individual units and the lessor of the individual units.
The individual unit owners of the leasehold condominium units shall become
lessees of the fee title condominium units;
     (c) Unless otherwise provided by the lease
or agreed by the lessor and lessee of the fee title condominium units, the
obligations to pay rent under the former lease must be allocated among all
former leasehold units on the basis of the percentage ownership in the common
elements of the condominium allocated to each unit;
     (d) Liens against leasehold condominium
units become liens on the lesseeÂ’s interest in the leased unit and have the
same priority and rights against the leasehold of the individual unit in the
fee title condominium formerly held against the leasehold condominium unit;
     (e) The holder of the fee title to the
unit in the fee condominium shall have the same priority and rights in the
individual leasehold of the fee title condominium unit as was held under the
leases prior to submission of the fee title interest; and
     (f) The fee title interest is not subject
to the liens suffered or incurred by the unit lessee, except for property taxes
and condominium association assessment liens.
     (2) The assessor shall assign all value of
the fee simple interest to the fee title condominium units and allocate any
additional value in accordance with the allocation of interest of each unit in
the common elements.
     (3) All easements, covenants, conditions
and restrictions or other interests encumbering the fee title and the leasehold
at the time of submission of the fee title to the provisions of this chapter
continue and remain in full force, unaffected by the submission.
     (4)(a) Options to purchase that were
granted to unit owners or to the association prior to submission of the fee
title interest to the provisions of this chapter pursuant to ORS 100.102
continue according to their terms, except that purchaser options must be
segregated so that each option pertains to an individual unit only.
     (b) Unless the purchase options provide
otherwise, the purchase price must be allocated among the individual units on
the basis of the percentage ownership interest in the common elements
pertaining to individual units.
     (c) Except for segregating the former
leasehold into individual leaseholds in each of the units and reallocating
lease payments among the units as provided in this section, the terms and
provisions of the former lease are unaffected by submission of the fee title to
the provisions of this chapter.
     (d) Except for segregating the purchase
options and allocating the purchase price, if not otherwise allocated by the
terms of the purchase option, the terms and provisions of the purchase option
are unaffected by submission of the fee title to the provisions of this
chapter. [2003 c.569 §44]
     Note: See note under 100.102.
     100.105
Contents of declaration; property name; variable property description. (1) A declaration shall contain:
     (a) A description of the property,
including property on which a unit or a limited common element is located,
whether held in fee simple, leasehold, easement or other interest or
combination thereof, that is being submitted to the condominium form of
ownership and that conforms to the description in the surveyorÂ’s certificate
provided under ORS 100.115 (2).
     (b) Subject to subsection (11) of this
section, a statement of the interest in the property being submitted to the
condominium form of ownership, whether fee simple, leasehold, easement or other
interest or combination thereof.
     (c) Subject to subsection (5) of this
section, the name by which the property shall be known and a general
description of each unit and the building or buildings, including the number of
stories and basements of each building, the total number of units and the
principal materials of which they are constructed.
     (d) The unit designation, a statement that
the location of each unit is shown on the plat, a description of the boundaries
and area in square feet of each unit and any other data necessary for proper
identification. The area of a unit shall be the same as shown for that unit on
the plat described in ORS 100.115 (2).
     (e) A notice in substantially the
following form in at least 12-point type that is either all capitals or
boldface:
______________________________________________________________________________
NOTICE
     THE SQUARE FOOTAGE AREAS STATED IN THIS
DECLARATION AND THE PLAT ARE BASED ON THE BOUNDARIES OF THE UNITS AS DESCRIBED
IN THIS DECLARATION AND MAY VARY FROM THE AREA OF UNITS CALCULATED FOR OTHER
PURPOSES.
______________________________________________________________________________
     (f) A description of the general common
elements.
     (g) An allocation to each unit of an
undivided interest in the common elements in accordance with ORS 100.515 and
the method used to establish the allocation.
     (h) The designation of any limited common
elements including:
     (A) A general statement of the nature of
the limited common element;
     (B) A statement of the unit to which the
use of each limited common element is reserved, provided the statement is not a
reference to an assignment of use specified on the plat; and
     (C) The allocation of use of any limited
common element appertaining to more than one unit.
     (i) The method of determining liability
for common expenses and right to common profits in accordance with ORS 100.530.
     (j) The voting rights allocated to each
unit in accordance with ORS 100.525 or in the case of condominium units
committed as property in a timeshare plan defined in ORS 94.803, the voting
rights allocated in the timeshare instrument.
     (k) A statement of the use, residential or
otherwise, for which the building or buildings and each of the units is
intended.
     (L) A statement that the designated agent
to receive service of process in cases provided in ORS 100.550 (1) is named in
the Condominium Information Report which will be filed with the Real Estate
Agency in accordance with ORS 100.250 (1)(a).
     (m) The method of amending the declaration
and the percentage of voting rights required to approve an amendment of the
declaration in accordance with ORS 100.135.
     (n) A statement as to whether or not the
association of unit owners pursuant to ORS 100.405 (5) and (8) has authority to
grant leases, easements, rights of way, licenses and other similar interests
affecting the general and limited common elements of the condominium and
consent to vacation of roadways within and adjacent to the condominium.
     (o) If the condominium contains a floating
structure described in ORS 100.020 (3), a statement regarding the authority of
the board of directors of the association, subject to ORS 100.410, to
temporarily relocate the floating structure without a majority vote of affected
unit owners.
     (p) Any restrictions on alienation of
units. Any such restrictions created by documents other than the declaration
may be incorporated by reference in the declaration to the official records of
the county in which the property is located.
     (q) Any other details regarding the
property that the person executing the declaration considers desirable.
However, if a provision required to be in the bylaws under ORS 100.415 is
included in the declaration, the voting requirements for amending the bylaws
shall also govern the amendment of the provision in the declaration.
     (2) In the event the declarant proposes to
annex additional property to the condominium under ORS 100.125, the declaration
shall also contain a general description of the plan of development, including:
     (a) The maximum number of units to be
included in the condominium.
     (b) The date after which any right to
annex additional property will terminate.
     (c) A general description of the nature
and proposed use of any additional common elements which declarant proposes to
annex to the condominium, if such common elements might substantially increase
the proportionate amount of the common expenses payable by existing unit
owners.
     (d) A statement that the method used to
establish the allocation of undivided interest in the common elements, the
method used to determine liability for common expenses and right to common
profits and the method used to allocate voting rights for each unit annexed
shall be as stated in the declaration in accordance with subsection (1)(g), (i)
and (j) of this section.
     (e) Such other information as the Real
Estate Commissioner shall require in order to carry out the purposes of ORS
100.015, 100.635 to 100.730 and 100.740 to 100.910.
     (3) Except where expressly prohibited by
the declaration and subject to the requirements of ORS 100.135 (2) and
subsections (9) and (10) of this section:
     (a) Not later than two years following the
termination dates specified in subsections (2)(b) and (7)(d) of this section,
such termination dates may be extended for a period not exceeding two years;
and
     (b) The general description under
subsection (2)(c) of this section and the information included in the
declaration in accordance with subsection (7)(c), (g) and (h) of this section
may be changed by an amendment to the declaration.
     (4) The information included in the
declaration in accordance with subsection (2)(a) and (d) of this section and
subsection (7)(a), (b), (e), (f) and (k) of this section may not be changed
unless all owners agree to the change and record an amendment to the
declaration in accordance with this chapter.
     (5) The name of the property shall include
the word “condominium” or “condominiums” or the words “a condominium.”
     (6) A condominium may not bear a name
which is the same as or deceptively similar to the name of any other
condominium located in the same county.
     (7) If the condominium is a flexible
condominium containing variable property, the declaration shall also contain a
general description of the plan of development, including:
     (a) A statement that the rights provided
for under ORS 100.150 (1) are being reserved.
     (b) A statement:
     (A) Of any limitations on rights reserved
under ORS 100.150 (1), including whether the consent of any unit owner shall be
required, and if so, a statement of the method by which the consent shall be
ascertained; or
     (B) That there are no limitations on
rights reserved under ORS 100.150 (1).
     (c) A statement of the total number of
tracts of variable property within the condominium, including:
     (A) A designation of each tract as
withdrawable or nonwithdrawable variable property;
     (B) Identification of each variable tract
by a label in accordance with ORS 100.115 (2)(i);
     (C) A statement of the method of labeling each
tract depicted on the plat in accordance with ORS 100.115 (2)(i); and
     (D) A statement of the total number of
tracts of each type of variable property.
     (d) The termination date, which is the
date or time period after which any right reserved under ORS 100.150 (1) will
terminate, and a statement of the circumstances, if any, that will terminate
any right on or before the date or time period specified. The date or time
period may not exceed seven years from the recording of the conveyance of the
first unit in the condominium to a person other than the declarant. Recording
shall be in the county in which the property is located.
     (e) The maximum number of units that may
be created.
     (f) A statement that the method used to
establish the allocations of undivided interest in the common elements, the
method used to determine liability for common expenses and right to common
profits and the method used to allocate voting rights as additional units are
created shall be the same as stated in the declaration in accordance with
subsection (1)(g), (i) and (j) of this section.
     (g) A general description of all existing
improvements and the nature and proposed use of any improvements that may be
made on variable property if the improvements might substantially increase the
proportionate amount of the common expenses payable by existing unit owners.
     (h) A statement of whether or not the
declarant reserves the right to create limited common elements within any
variable property, and if so, a general description of the types that may be
created.
     (i) A statement that the plat shows the
location and dimensions of all withdrawable variable property that is labeled “WITHDRAWABLE
VARIABLE PROPERTY.”
     (j) A statement that if by the termination
date all or a portion of the withdrawable variable property has not been
withdrawn or reclassified, the withdrawable property shall automatically be
withdrawn from the condominium as of the termination date.
     (k) A statement of the rights of the
association under ORS 100.155 (2).
     (L) A statement of whether or not all or
any portion of the variable property may not be withdrawn from the condominium
and, if so, with respect to the nonwithdrawable variable property:
     (A) A statement that the plat shows the
location and dimensions of all nonwithdrawable property that is labeled “NONWITHDRAWABLE
VARIABLE PROPERTY.”
     (B) A description of all improvements that
may be made and a statement of the intended use of each improvement.
     (C) A statement that, if by the
termination date all or a portion of the variable property designated as “nonwithdrawable
variable property” has not been reclassified, the property shall automatically
be reclassified as of the termination date as a general common element of the
condominium and any interest in such property held for security purposes shall
be automatically extinguished by such classification.
     (D) A statement of the rights of the
association under ORS 100.155 (3).
     (m) A statement by the local governing
body or appropriate department thereof that the withdrawal of any variable
property designated as “withdrawable variable property” in the declaration in
accordance with paragraph (L) of this subsection, will not violate any
applicable planning or zoning regulation or ordinance. The statement may be
attached as an exhibit to the declaration.
     (8) The plan of development for any
variable property included in the declaration or any supplemental declaration
of any stage in accordance with subsection (7) of this section shall be subject
to any plan of development included in the declaration in accordance with
subsection (2) of this section, except that the time limitation specified in
subsection (7)(d) of this section shall govern any right reserved under ORS
100.150 (1) with respect to any variable property.
     (9) The information included in the
declaration in accordance with subsection (7)(j), (k) and (m) of this section
may not be deleted by amendment.
     (10) Approval by the unit owners shall not
be required to redesignate variable property as “nonwithdrawable variable
property” by supplemental declaration or amendment if such redesignation is
required by the local governing body or appropriate department thereof to
comply with any planning or zoning regulation or ordinance. If as a result of
such redesignation the information required to be included in the supplemental
declaration or an amendment under subsection (7)(L)(B) of this section is
inconsistent with the information included in the declaration or supplemental
declaration in accordance with subsection (7)(g) of this section, an amendment
to the declaration approved by at least 75 percent of owners shall be required.
     (11) The statement of an interest in
property other than fee simple submitted to the condominium form of ownership
and any easements, rights or appurtenances belonging to property submitted to
the condominium form of ownership, whether leasehold or fee simple, shall
include:
     (a) A reference to the recording index
numbers and date of recording of the instrument creating the interest; or
     (b) A reference to the law, administrative
rule, ordinance or regulation that creates the interest if the interest is
created under law, administrative rule, ordinance or regulation and not
recorded in the office of the recording officer of the county in which the property
is located. [Formerly 94.029; 1995 c.31 §1; 1997 c.816 §3; 1999 c.677 §40; 2001
c.756 §26; 2003 c.569 §23; 2007 c.410 §8]
     100.110
Approval of declaration, supplemental declaration or amendment required;
prerequisites; fee. (1)
Before a declaration, supplemental declaration or an amendment thereto may be
recorded, it must be approved as provided in this section by the county
assessor and the Real Estate Commissioner. Before a declaration or supplemental
declaration may be recorded, it must be approved by the tax collector of the
county in which the property is located. A declaration or amendment thereto may
not be approved unless the requirements of subsections (2) to (6) of this
section are met. Approval shall be evidenced by execution of the declaration or
amendment or by a written approval attached thereto.
     (2) The county assessor of the county in
which the property is located shall approve a declaration, supplemental
declaration or amendment thereto if:
     (a) The name complies with ORS 100.105 (5)
and (6); and
     (b) The plat and floor plans comply with
the requirements of ORS 100.115.
     (3) The tax collector of the county in
which the property is located shall approve the declaration or supplemental
declaration, or an amendment that adds property to the condominium or changes
the boundary of a unit for which a plat is required under ORS 100.115 (9)(a),
if:
     (a) All ad valorem taxes, special
assessments, fees, or other charges required by law to be placed upon the tax
roll which have or will become a lien upon the property during the tax year
have been paid;
     (b) Advance payment of ad valorem taxes,
special assessments, fees or other charges which are not on the tax roll and
for which payment is required under paragraph (a) of this subsection has been
made to the tax collector utilizing the procedures contained in ORS 92.095 and
311.370; and
     (c) The additional taxes, penalty, and any
interest attributable thereto, required because of disqualification of the
property from any special assessment have been paid.
     (4) Subject to subsection (5) of this
section, the commissioner shall approve the declaration or amendment thereto
if:
     (a) The declaration or the amendment
thereto complies with the requirements of ORS 100.105 and 100.135;
     (b) The bylaws adopted under ORS 100.410
comply with the requirements of ORS 100.410 and 100.415;
     (c) The plat and floor plans comply with
the requirements of ORS 100.115;
     (d) The declaration is for a conversion
condominium and the declarant has submitted:
     (A) An affidavit that the notice of
conversion was given in accordance with ORS 100.305 and that the notice period
has expired;
     (B) An affidavit that the notice of
conversion was given in accordance with ORS 100.305 and copies of the written
consent of any tenants who received the notice of conversion before expiration
of the notice; or
     (C) Any applicable combination of the
requirements of subparagraphs (A) and (B) of this paragraph; and
     (e) A paper copy of the plat executed by
the declarant and prepared in conformance with ORS 100.115 and a certification
of plat execution, on a form prescribed and furnished by the commissioner, have
been submitted stating that the paper copy is a true copy of the plat signed by
the declarant. The certification may be executed by the declarant, the
professional land surveyor who signed the surveyorÂ’s certificate on the plat,
the attorney for the declarant, a representative of the title insurance company
that issued the information required under ORS 100.640 (5) or 100.660 (2)(d) or
another person authorized by the declarant in writing to execute the
certification.
     (5) Approval by the commissioner shall not
be required for an amendment to a declaration transferring the right of use of
a limited common element pursuant to ORS 100.515 (5).
     (6) Before the commissioner approves the
declaration or amendment thereto under this section:
     (a) The declarant shall pay to the
commissioner a fee determined by the commissioner under ORS 100.670; and
     (b) For an amendment, the Condominium
Information Report and the Annual Report described in ORS 100.260 shall be
designated current by the Real Estate Agency as provided in ORS 100.255 and the
fee required under ORS 100.670 shall be paid.
     (7) If the declaration or amendment
thereto approved by the commissioner under subsection (4) of this section is
not recorded in accordance with ORS 100.115 within two years from the date of
approval by the commissioner, the approval shall automatically expire and the
declaration or amendment thereto must be resubmitted for approval in accordance
with this section. The commissionerÂ’s approval shall set forth the date on
which the approval will expire. [Formerly 94.036; 1991 c.459 §339; 1993 c.270 §1;
1997 c.816 §4; 1999 c.677 §41; 2001 c.756 §27]
     100.115
Recording declaration and plat; plat contents; supplemental declaration and
plat; approval of declaration and plat amendments; fees. (1) When a declaration or a supplemental
declaration under ORS 100.125 is made and approved as required, it shall, upon
the payment of the fees provided by law, be recorded by the recording officer.
The fact of recording and the date thereof shall be entered thereon. At the
time of recording the declaration or supplemental declaration, the person
offering it for record shall also file an exact copy, certified by the
recording officer to be a true copy thereof, with the county assessor.
     (2) A plat of the land described in the
declaration or a supplemental plat described in a supplemental declaration,
complying with ORS 92.050, 92.060 (1) and (2), 92.080 and 92.120, shall be
recorded simultaneously with the declaration or supplemental declaration. Upon
request, the person offering the plat or supplemental plat for recording shall
also file an exact copy, certified by the surveyor who made the plat to be an
exact copy of the plat, with the county assessor and the county surveyor. The
exact copy shall be made on suitable drafting material having the
characteristics of strength, stability and transparency required by the county
surveyor. The plat or supplemental plat, titled in accordance with subsection
(4) of this section, shall:
     (a) Show the location of:
     (A) All buildings and public roads. The
location shall be referenced to a point on the boundary of the property; and
     (B) For a condominium containing units
described in ORS 100.020 (3)(b)(C) or (D), the moorage space or floating
structure. The location shall be referenced to a point on the boundary of the
upland property regardless of a change in the location resulting from a
fluctuation in the water level or flow.
     (b) Show the designation, location,
dimensions and area in square feet of each unit including:
     (A) For units in a building described in
ORS 100.020 (3)(b)(A), the horizontal and vertical boundaries of each unit and
the common elements to which each unit has access. The vertical boundaries
shall be referenced to a known benchmark elevation or other reference point as
approved by the city or county surveyor;
     (B) For a space described in ORS 100.020
(3)(b)(B), the horizontal boundaries of each unit and the common elements to
which each unit has access. If the space is located within a structure, the
vertical boundaries also shall be shown and referenced to a known benchmark
elevation or other reference point as approved by the city or county surveyor;
     (C) For a moorage space described in ORS
100.020 (3)(b)(C), the horizontal boundaries of each unit and the common
elements to which each unit has access; and
     (D) For a floating structure described in
ORS 100.020 (3)(b)(D), the horizontal and vertical boundaries of each unit and
the common elements to which each unit has access. The vertical boundaries
shall be referenced to an assumed elevation of an identified point on the
floating structure even though the assumed elevation may change with the
fluctuation of the water level where the floating structure is moored.
     (c) Identify and show, to the extent
feasible, the location and dimensions of all limited common elements described
in the declaration. The plat may not include any statement indicating to which
unit the use of any noncontiguous limited common element is reserved.
     (d) Include a statement, including
signature and official seal, of a registered architect, registered professional
land surveyor or registered professional engineer certifying that the plat
fully and accurately depicts the boundaries of the units of the building and
that construction of the units and buildings as depicted on the plat has been
completed, except that the professional land surveyor who prepared the plat
need not affix a seal to the statement.
     (e) Include a surveyor’s certificate,
complying with ORS 92.070, that includes information in the declaration in
accordance with ORS 100.105 (1)(a) and a metes and bounds description or other
description approved by the city or county surveyor.
     (f) Include a statement by the declarant
that the property and improvements described and depicted on the plat are
subject to the provisions of ORS 100.005 to 100.625.
     (g) Include such signatures of approval as
may be required by local ordinance or regulation.
     (h) Include any other information or data
not inconsistent with the declaration that the declarant desires to include.
     (i) If the condominium is a flexible
condominium, show the location and dimensions of all variable property
identified in the declaration and label the variable property as “WITHDRAWABLE
VARIABLE PROPERTY” or “NONWITHDRAWABLE VARIABLE PROPERTY,” with a letter
different from those designating a unit, building or other tract of variable
property. If there is more than one tract, each tract shall be labeled in the
same manner.
     (3) The supplemental plat required under
ORS 100.150 (1) shall be recorded simultaneously with the supplemental
declaration. Upon request, the person offering the supplemental plat for recording
shall also file an exact copy, certified by the surveyor who made the plat to
be an exact copy of the plat, with the county assessor and the county surveyor.
The exact copy shall be made on suitable drafting material having the
characteristics of strength, stability and transparency required by the county
surveyor. The supplemental plat, titled in accordance with subsection (4) of
this section, shall:
     (a) Comply with ORS 92.050, 92.060 (1),
(2) and (4), 92.080, 92.120 and subsections (4) and (5) of this section.
     (b) If any property is withdrawn:
     (A) Show the resulting perimeter
boundaries of the condominium after the withdrawal; and
     (B) Show the information required under
subsection (2)(i) of this section as it relates to any remaining variable property.
     (c) If any property is reclassified, show
the information required under subsection (2)(a) to (d) of this section.
     (d) Include a “Declarant’s Statement” that
the property described on the supplemental plat is reclassified or withdrawn
from the condominium and that the condominium exists as described and depicted
on the plat.
     (e) Include a surveyor’s affidavit
complying with ORS 92.070.
     (4) The title of each supplemental plat
described in ORS 100.120 shall include the complete name of the condominium,
followed by the additional language specified in this subsection and the
appropriate reference to the stage being annexed or tract of variable property
being reclassified. Each supplemental plat for a condominium recorded on or
after January 1, 2002, shall be numbered sequentially and shall:
     (a) If property is annexed under ORS
100.125, include the words “Supplemental Plat No._____: Annexation of Stage_____;
or
     (b) If property is reclassified under ORS
100.150, include the words “Supplemental Plat No._____: Reclassification of
Variable Property, Tract_____.
     (5) Before a plat or a supplemental plat
may be recorded, it must be approved by the city or county surveyor as provided
in ORS 92.100. Before approving the plat as required by this section, the city
or county surveyor shall:
     (a) Check the boundaries of the plat and
units and take measurements and make computations necessary to determine that
the plat complies with this section.
     (b) Determine that the name complies with
ORS 100.105 (5) and (6).
     (c) Determine that the following are
consistent:
     (A) The designation and area in square
feet of each unit shown on the plat and the unit designations and areas
contained in the declaration in accordance with ORS 100.105 (1)(d);
     (B) Limited common elements identified on
the plat and the information contained in the declaration in accordance with
ORS 100.105 (1)(h);
     (C) The description of the property in the
surveyorÂ’s certificate included on the plat and the description contained in
the declaration in accordance with ORS 100.105 (1)(a); and
     (D) For a flexible condominium, the
variable property depicted on the plat and the identification of the property
contained in the declaration in accordance with ORS 100.105 (7)(c).
     (6) The person offering the plat for
approval shall:
     (a) Submit a copy of the proposed
declaration and bylaws or applicable supplemental declaration at the time the
plat is submitted; and
     (b) Submit the original or a copy of the
executed declaration and bylaws or the applicable supplemental declaration
approved by the commissioner if required by law prior to approval.
     (7) For performing the services described
in subsection (5)(a) to (c) of this section, the city surveyor or county
surveyor shall collect from the person offering the plat for approval a fee of
$150 plus $25 per building. The governing body of a city or county may
establish a higher fee by resolution or order.
     (8)(a) Whenever variable property is
reclassified or withdrawn as provided in ORS 100.155 (1) or (2) or property is removed
as provided in ORS 100.600 (2), the county surveyor shall, upon the surveyorÂ’s
copy of all previously recorded plats relating to the variable property or
property being removed and upon any copy thereof certified by the county clerk,
trace, shade or make other appropriate marks or notations, including the date
and the surveyorÂ’s name or initials, with archival quality black ink in such
manner as to denote the reclassification, withdrawal or removal. The recording
index numbers and date of recording of the supplemental declaration and plat or
amendment and amended plat shall also be referenced on the copy of each plat.
The original plat may not be changed or corrected after the plat is recorded.
     (b) For performing the activities
described in this subsection, the county clerk shall collect a fee set by the
county governing body. The county clerk shall also collect a fee set by the
county governing body to be paid to the county surveyor for services provided
under this subsection.
     (9) In addition to the provisions of
subsection (12) of this section, a plat, including any floor plans that are a
part of the plat, may be amended as follows:
     (a)(A) Except as otherwise provided in ORS
100.600, a change to the boundary of the property, a unit or a limited common
element or a change to the configuration of other information required to be
graphically depicted on the plat shall be made by a plat entitled “Plat
Amendment” that shall reference in the title of the amendment the recording
information of the original plat and any previous plat amendments.
     (B) The plat amendment shall comply with
ORS 92.050, 92.060 (1), (2) and (4), 92.080 and 92.120 and shall include:
     (i) A graphic depiction of the change.
     (ii) For a change to the boundary of the
property, a surveyorÂ’s certificate, complying with ORS 92.070.
     (iii) For a change to a boundary of a unit
or a limited common element or a change to other information required to be
graphically depicted, the statement of a registered architect, registered
professional land surveyor or registered professional engineer described in
subsection (2)(d) of this section.
     (iv) A declaration by the chairperson and
secretary on behalf of the association of unit owners that the plat is being
amended pursuant to this subsection. Such declaration shall be executed and
acknowledged in the manner provided for acknowledgment of deeds.
     (C) The plat amendment shall be
accompanied by an amendment to the declaration authorizing such plat amendment.
The declaration amendment shall be executed, approved and recorded in
accordance with ORS 100.110 and 100.135.
     (D) Before a plat amendment may be
recorded, it must be approved by the city or county surveyor as provided in ORS
92.100. The surveyor shall approve the plat amendment if it complies with the
requirements of this subsection. The person offering the plat amendment shall:
     (i) Submit a copy of the proposed
amendment to the declaration required under this paragraph when the plat
amendment is submitted; and
     (ii) Submit the original or a copy of the
executed amendment to the declaration approved by the commissioner if required
by law prior to approval of the plat amendment.
     (E) Upon request, the person offering the
plat amendment for recording shall also file an exact copy, certified by the surveyor
who made the plat to be an exact copy of the plat amendment, with the county
assessor and the county surveyor. The exact copy shall be made on suitable
drafting material having the strength, stability and transparency required by
the county surveyor.
     (b)(A) A change to a restriction or other
information not required to be graphically depicted on the plat may be made by
amendment of the declaration without a plat amendment described in paragraph
(a) of this subsection. An amendment under this paragraph shall include:
     (i) A reference to recording index numbers
and date of recording of the declaration, plat and any applicable supplemental
declarations, amendments, supplemental plats or plat amendments.
     (ii) A description of the change to the
plat.
     (iii) A statement that the amendment was
approved in accordance with the declaration and ORS 100.135.
     (B) The amendment shall be executed,
approved and recorded in accordance with ORS 100.110 and 100.135.
     (C) Before the amendment may be recorded,
it must be approved by the city or county surveyor as provided in ORS 92.100.
The surveyor shall approve the amendment if it complies with this subsection.
Such approval shall be evidenced by execution of the amendment or by written
approval attached thereto.
     (c)(A) Floor plans of a condominium for
which a plat was not required at the time of creation may be amended by an
amendment to the declaration. An amendment under this paragraph shall include:
     (i) A reference to recording index numbers
and date of recording of the declaration and any applicable supplemental
declarations or amendments.
     (ii) A description of the change to the
floor plans.
     (iii) A graphic depiction of any change to
the boundaries of a unit or common element and a statement by a registered architect,
registered professional land surveyor or registered professional engineer
certifying that such graphic depiction fully and accurately depicts the
boundaries of the unit or common element as it currently exists.
     (B) The amendment shall be approved and
recorded in accordance with ORS 100.110 and 100.135 except that any change to
the floor plans need only comply with the requirements of the unit ownership
laws in effect at the time the floor plans were initially recorded.
     (10) After recording of any declaration
amendment or plat amendment pursuant to subsection (9) of this section, the
county surveyor shall, upon the surveyorÂ’s copy of all previously recorded
plats relating to the condominium and any copies filed under ORS 92.120 (3),
make such appropriate marks or notations, including the date and the surveyorÂ’s
name or initials, with archival quality black ink in such manner as to denote
the changes. The recording index numbers and date of recording of the
declaration amendment and any plat amendment shall also be referenced on the
copy of each plat. The original plat may not be changed or corrected after the
plat is recorded.
     (11) For performing the services described
in subsections (9) and (10) of this section, the county surveyor shall collect
from the person offering the plat amendment or declaration amendment for
approval a fee established by the county governing body.
     (12) The following may be amended by an
affidavit of correction in accordance with ORS 92.170:
     (a) A plat, whenever recorded.
     (b) Floor plans recorded prior to October
15, 1983. [Formerly 94.042; 1991 c.763 §28; 1997 c.489 §8; 1997 c.816 §5; 1999
c.677 §42; 1999 c.710 §7; 2001 c.104 §30; 2001 c.173 §3; 2001 c.756 §28; 2003
c.569 §24; 2005 c.22 §75; 2007 c.410 §17]
     100.120
Supplemental declaration and plat required to annex additional property or
reclassify variable property; termination date. (1) To annex additional property to the
condominium or to reclassify variable property under ORS 100.125 or 100.150, a
supplemental declaration and a supplemental plat shall be executed, approved
and recorded by declarant at the time of each annexation or reclassification.
The supplemental plat shall comply with ORS 100.115 and the supplemental
declarations shall:
     (a) Include a reference to recording index
numbers and date of recording of the initial declaration and bylaws.
     (b) Be consistent with the provisions of
the original declaration prepared pursuant to ORS 100.105 and any prior
recorded supplemental declarations.
     (c) Contain the information required by
ORS 100.105 (1) insofar as that information relates to the property being
annexed or reclassified.
     (d) State the allocation of undivided
interest in the common elements of each unit previously submitted to the
provisions of this chapter upon the creation or annexation of the additional
property.
     (e) If the stage being annexed contains
any variable property, include the information required under ORS 100.105 (7)
insofar as that information relates to the property being annexed. The termination
date shall be consistent with the information included in the declaration in
accordance with ORS 100.105 (2)(b) but may not exceed seven years from the
recording of the conveyance of the first unit in the stage to a person other
than the declarant. Recording shall be in the county in which the property is
located.
     (2) If the Condominium Information Report
and the Annual Report described in ORS 100.250 are designated current as
provided in ORS 100.255, all such supplemental declarations and plats shall be
approved, executed and recorded as provided in ORS 100.100, 100.110 and
100.115. No unit being annexed or created by a supplemental declaration shall
be conveyed until after such recording.
     (3) To withdraw all or a portion of
variable property from a flexible condominium pursuant to ORS 100.150 (1)(b), a
supplemental declaration and plat shall be recorded in accordance with
subsection (2) of this section. The supplemental plat shall comply with ORS
100.115 (3) and the supplemental declaration shall:
     (a) Be consistent with the provisions of
the declaration or supplemental declaration drawn pursuant to ORS 100.105 (7).
     (b) Include a metes and bounds legal
description of the variable property being withdrawn.
     (c) Include a metes and bounds legal description
of the resulting boundaries of the condominium after the withdrawal.
     (d) State whether or not any variable
property remains which may be reclassified or withdrawn from the condominium
and, if property may be withdrawn, include the statement required under ORS
100.105 (7)(m).
     (e) If any variable property is being
redesignated as “nonwithdrawable variable property,” include the information
required under ORS 100.105 (7)(L).
     (4) Except as provided in subsection (5)
of this section, as to property submitted to unit ownership after October 4,
1977, additional units may not be added within property previously submitted to
unit ownership unless all unit owners consent to an amendment to the
declaration, plat and any floor plans recorded pursuant to ORS 100.115 in order
to provide for such additional units.
     (5) As to property submitted to unit
ownership before September 27, 1987, if the declaration provides that
additional property may be annexed to the condominium, any subsequent stage may
contain variable property. The termination date may not be later than the
earlier of:
     (a) The date specified in the declaration
under ORS 100.105 (2)(b); or
     (b) Seven years from the recording of the
conveyance of the first unit in the condominium to a person other than the
declarant. Recording shall be in the county in which the property is located. [Formerly
94.047; 1995 c.31 §2; 1999 c.677 §43; 2001 c.756 §29]
     100.122
Declaration prevails over inconsistent provisions of bylaws or articles of
incorporation. In the event
of a conflict between the declaration and the bylaws or between the declaration
and any articles of incorporation, the declaration shall prevail except to the
extent the declaration is inconsistent with ORS 100.005 to 100.910. [1999 c.677
§62]
     Note: 100.122 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.123
Authority to amend declaration or bylaws to comply with federal or state law. (1) A declarant may amend the declaration or
bylaws in order to comply with requirements of the Federal Housing
Administration, the United States Department of Veterans Affairs, Rural
Development or the Farm Service Agency of the United States Department of
Agriculture, the Federal National Mortgage Association, the Government National
Mortgage Association, the Federal Home Loan Mortgage Corporation, any
department, bureau, board, commission or agency of the United States or the State
of Oregon or any corporation wholly owned, directly or indirectly, by the
United States or the State of Oregon that insures, guarantees or provides
financing for a condominium or units in a condominium.
     (2) If the need to amend the declaration
or the bylaws occurs after turnover to the association of unit owners has
occurred, the amendment must be approved by the association in accordance with
the approval provisions of the declaration or bylaws and this chapter. [2007
c.410 §4]
     Note: 100.123 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.125
Annexation of additional property; requirements. Subject to ORS 100.120 (4), if the
declaration complies with ORS 100.105 (2), until the termination date,
additional property may be annexed to the condominium by the recording of a
supplemental declaration and supplemental plat in accordance with ORS 100.115
and 100.120. [Formerly 94.048; 2001 c.756 §30]
     100.130
Relocation of unit boundaries and common elements by amendment to declaration. (1) Subject to any limitations contained in
the declaration, the boundaries between adjoining units, including any
intervening common elements, may be relocated or eliminated by an amendment to
the declaration. The owners of the affected units shall submit to the board of
directors of the association a proposed amendment which shall identify the
units involved, state any reallocations of common element interest, voting
rights, common expense liability and right to common profits and contain words
of conveyance. The board of directors shall approve the amendment unless it
determines within 45 days that the reallocations are unreasonable or the
relocation or elimination will impair the structural integrity or mechanical
systems of the condominium or lessen the support of any portion of the
condominium.
     (2) The board of directors of the
association of unit owners may require the owners of the affected units to
submit an opinion of a registered architect or registered professional engineer
that the proposed relocation or elimination will not impair the structural
integrity or mechanical systems of the condominium or lessen the support of any
portion of the condominium.
     (3) The board of directors of the
association or any agent appointed by the board of directors may supervise the
work necessary to effect the boundary relocation or elimination.
     (4) Any expenses incurred under
subsections (2) and (3) of this section shall be charged to the owners of the
units requesting the boundary relocation or elimination.
     (5) The amendment shall be executed by the
owners and mortgagees or trust deed beneficiaries of the affected units,
certified by the chairperson and secretary of the association and approved and
recorded in accordance with ORS 100.135 (2)(b).
     (6) An amendment to the plat and any floor
plans necessary to show the altered boundaries between the adjoining units
shall be recorded in accordance with ORS 100.115. [Formerly 94.053; 2003 c.569 §25]
     100.135
Amendments to declaration; requirements; procedure. (1) Unless otherwise provided in the
declaration, an amendment to the declaration may be proposed by a majority of
the board of directors of the association of unit owners or by at least 30
percent of the unit owners.
     (2) Except as otherwise provided in ORS
100.005 to 100.625, an amendment of the declaration is not effective unless:
     (a) The amendment is approved by the unit
owners as provided in this section and the Real Estate Commissioner and county
assessor according to ORS 100.110; and
     (b) The amendment, certified by the
chairperson and secretary of the association of unit owners as being adopted in
accordance with the declaration and the provisions of this section and
acknowledged in the manner provided for acknowledgment of deeds, is recorded
notwithstanding a provision in a declaration, including a declaration recorded
before January 1, 2002, that requires amendments to be executed and acknowledged
by all owners approving the amendment.
     (3) Except as otherwise provided in ORS
100.105 or 100.130 or this section, the declaration may be amended only with
the approval of at least 75 percent of owners, or such greater percentage as
may be required by the declaration.
     (4) Unless the declaration requires a
greater percentage:
     (a) The declaration and plat may be
amended to change a general common element to a limited common element or
change the boundary of a limited common element with the approval of at least
75 percent of owners and approval of the owners of all units to which the
limited common element appertains.
     (b) The declaration may be amended to
change a limited common element, or portion thereof, to a general common
element with the approval of the owners of all units to which the limited
common element appertains and the board of directors.
     (5)(a) Except as otherwise provided in ORS
100.120, 100.130, 100.515, 100.600, 100.605 and 100.625 and paragraph (b) of
this subsection or other provisions of the Oregon Condominium Act, an amendment
that changes the boundary of the property or a unit shall be approved by all
unit owners. Such amendment shall constitute a conveyance and shall include
words of conveyance. In addition to the certification required under subsection
(2)(b) of this section, an amendment to the boundary of a unit shall also be
executed by the owners of all affected units.
     (b) An amendment that adds property owned
by the association to the condominium as a common element shall constitute a
conveyance and shall:
     (A) Be approved by at least 75 percent of
owners;
     (B) Contain words of conveyance;
     (C) Be executed by the chairperson and
secretary of the association on behalf of the unit owners and be certified in
accordance with subsection (2)(b) of this section; and
     (D) Be accompanied by a plat amendment in
accordance with ORS 100.115.
     (c) Nothing in paragraph (b) of this
subsection is intended to require property acquired or held by the association
pursuant to ORS 100.405 (4)(i) to be added to the condominium.
     (6) Except as otherwise provided in ORS
100.005 to 100.625, an amendment may not change the allocation of undivided
interest in the common elements, the method of determining liability for common
expenses, the method of determining the right to common profits or the method
of determining voting rights of any unit unless such amendment has been
approved by the owners of the affected units.
     (7) The declaration may not be amended to
limit or diminish any right of a declarant reserved under ORS 100.105 (2) or
(7) or any other special declarant right without the consent of the declarant.
However, the declarant may waive the declarantÂ’s right of consent.
     (8) Nothing in this section shall affect
any other approval that may be required by the declaration, bylaws or other
instrument.
     (9) During a period of declarant control
reserved under ORS 100.200, voting on an amendment under this section must be
without regard to any weighted vote or other special voting allocation reserved
by the declarant unless the declaration provides that the declarant has the
right to exercise the voting rights with respect to specifically described
amendments. Nothing in this subsection prohibits a declarant from reserving the
right that declarantÂ’s consent is required for an amendment during a period of
declarant control reserved in the declaration.
     (10) An amendment to a declaration or a
supplemental declaration shall be conclusively presumed to have been regularly
adopted in compliance with all applicable procedures relating to such amendment
unless an action is brought within one year after the date such amendment was
recorded or the face of the recorded amendment indicates that the amendment
received the approval of fewer votes than are required for such approval.
However, nothing in this subsection shall prevent the further amendment of an
amended declaration or plat in accordance with ORS 100.005 to 100.625.
     (11)(a) The board of directors, by
resolution and without the further approval of the unit owners, may cause a
restated declaration to be prepared and recorded to codify individual
amendments that have been adopted in accordance with this section.
     (b) A declaration restated under this
subsection must:
     (A) Include all previously adopted amendments
that are in effect and may not include any other changes except to correct
scrivenersÂ’ errors or to conform format and style;
     (B) Include a statement that the board of
directors has adopted a resolution in accordance with paragraph (a) of this subsection
and is causing the declaration to be restated and recorded under this
subsection;
     (C) Include a reference to the recording
index numbers and date of recording of the initial declaration and all
previously recorded amendments that are in effect and are being codified;
     (D) Include a certification by the
chairperson and secretary of the association that the restated declaration
includes all previously adopted amendments that are in effect, that amendments
were approved by the county assessor and tax collector if required under ORS
100.110 and that no other changes were made except, if applicable, to correct
scrivenersÂ’ errors or to conform format and style;
     (E) Be executed and acknowledged by the
chairperson and secretary of the association and recorded in the deed records
of each county in which the condominium is located; and
     (F) Be approved by the commissioner, and
by the county assessor and the tax collector under ORS 100.110 if the restated
declaration includes any amendments required to be approved by the county
assessor and the tax collector under ORS 100.110 but not previously approved.
     (c) The board of directors shall cause a
copy of the recorded restated declaration, including the recording information,
to be filed with the commissioner. [Formerly 94.059; 1995 c.31 §3; 1997 c.816 §6;
1999 c.677 §70; 2001 c.756 §31; 2003 c.569 §26]
     100.140
Temporary relocation of floating structure; security interests upon termination
of condominium. (1) A
floating structure described in ORS 100.020 (3)(b)(D) that constitutes part of
a condominium may be temporarily relocated for purposes of safety, renovation,
repair or remodeling without affecting its status as a condominium or real
property. However, if the floating structure is not returned to its original
location within 18 months after the relocation, the condominium shall be
terminated or, if there are remaining units, partially terminated pursuant to
ORS 100.600 and subsection (2) of this section.
     (2) If the condominium is terminated, all
security interests affecting any interest in the condominium shall continue to
be considered a security in real property after the termination,
notwithstanding that the floating structure portion of the condominium may be
physically moved from its permanent moorage.
     (3) When a floating structure has been
relocated under subsection (1) of this section, the board of directors of the
association shall give written notice of the temporary location of the
structure to the county assessor within 10 days of the relocation. [1997 c.816 §18]
     Note: 100.140 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
FLEXIBLE
CONDOMINIUMS
     100.150
DeclarantÂ’s options until termination date. (1) With regard to a flexible condominium, before the termination
date, and by recording a supplemental declaration and a supplemental plat in
accordance with ORS 100.115 and 100.120, the declarant may:
     (a) Reclassify all or a portion of the
property designated as variable in the declaration and on the plat, as one or
more general common elements, limited common elements, units or a combination
of the elements and units.
     (b) Unless designated in the declaration
or on the plat as nonwithdrawable property, withdraw all or a portion of the
variable property from the condominium.
     (2) Until variable property is withdrawn
or reclassified as provided in subsection (1) of this section or under ORS
100.155 (1):
     (a) The property shall be a distinct
classification of property and may not be a common element or unit of the
condominium.
     (b) The property shall be considered a
parcel of real property and shall be subject to separate assessment and
taxation by any taxing unit in like manner as other parcels of real property.
     (c) Unless otherwise specifically provided
in the declaration or supplemental declaration:
     (A) The declarant shall be responsible for
the payment of all assessments, taxes and other expenses of the variable property.
If the declarant fails to pay any expenses of any variable property designated
as nonwithdrawable variable property, the board of directors may elect to pay
the expenses and assess the unit owners as a common expense. All costs incurred
may be charged to the declarant.
     (B) Ownership or occupancy of variable
property shall not confer any right to use the common elements of the
condominium.
     (C) Ownership or occupancy of units shall
not confer any right to use variable property.
     (D) Variable property shall not be subject
to assessments for expenses of the condominium. [Formerly 94.021; 2001 c.756 §32]
     100.155
Variable property; uses and restrictions. (1) If by the termination date specified in the declaration there is
any remaining variable property:
     (a) Any property designated
nonwithdrawable variable property shall become part of the common elements and
any interest in such property held for security purposes shall be automatically
extinguished by reclassification.
     (b) Any property designated withdrawable
variable property shall be automatically withdrawn from the condominium as of
the termination date.
     (c) Subject to paragraph (d) of this
subsection, the association may record in the office of the recording officer
in the county in which the condominium is located:
     (A) For property reclassified under
paragraph (a) of this subsection, a “Statement of Reclassification of Variable
Property” stating that the remaining nonwithdrawable variable property has been
reclassified to common elements pursuant to paragraph (a) of this subsection.
     (B) For property withdrawn under paragraph
(b) of this subsection, a “Statement of Withdrawal of Variable Property from
Condominium” stating that remaining withdrawable variable property has been
withdrawn from the condominium pursuant to paragraph (b) of this subsection.
     (d) A statement described in paragraph (c)
of this subsection shall:
     (A) Include the name of the condominium, a
reference to the recording index numbers and date of recording of the
declaration, the plat creating the affected variable property and any
applicable supplemental declaration.
     (B) Include a description of the
reclassified or withdrawn variable property complying with ORS 93.600.
     (C) Be executed by the chairperson and
secretary of the association and acknowledged in the manner provided for
acknowledgment of deeds.
     (e) After recording a statement under
paragraph (c) of this subsection, the association shall provide a copy of the
recorded statement to the county surveyor. Upon receipt of the copy or other
notification, the county surveyor shall, upon the surveyorÂ’s copy of all
previously recorded plats relating to the condominium and any copies of the
plat filed under ORS 92.120 (3), make appropriate marks and notations,
including the date and the surveyorÂ’s name or initials, with archival quality
black ink in a manner that denotes the reclassification or withdrawal. The
recording index numbers and date of recording of the statement shall also be
referenced on the copy of each plat. The original plat may not be changed or
corrected after it is recorded with the county clerk.
     (2)(a) Unless expressly prohibited by the
declaration, any variable property automatically withdrawn from the condominium
under subsection (1)(b) of this section or voluntarily withdrawn under ORS
100.150 (1)(b) may be later annexed to the condominium by the recording of a
supplemental declaration and plat in accordance with ORS 100.120 (2) if such
action is first approved by at least 75 percent of all voting rights in the
manner required for an amendment to the declaration.
     (b) The supplemental declaration and plat
shall be executed by the chairperson and secretary on behalf of the association
and acknowledged in the manner provided for acknowledgment of deeds by such officers.
Except for the termination date, the supplemental declaration shall comply with
ORS 100.120 (1) and shall state that the annexation was approved by at least 75
percent of all voting rights.
     (3)(a) Unless expressly prohibited by the
declaration and notwithstanding the termination date, the association may, with
respect to any variable property automatically reclassified, exercise any
rights previously held by the declarant. The exercise of any right shall first
be approved by at least a majority of all voting rights. All other actions
relating to such reclassified general common elements shall be regulated and
governed in like manner as other general common elements of the condominium.
     (b) If a supplemental declaration and plat
is required for any action, the plat shall be executed by the chairperson and
secretary of the association and shall comply with the requirements of this
chapter as to a supplemental declaration and the recording of plats.
     (4) Title to any additional units created
under subsection (3) of this section shall automatically be vested in the
association upon the recording of a supplemental declaration and plat. The
board of directors acting on behalf of the association shall have the power to
hold, convey, lease, encumber or otherwise deal with a unit or any interest
therein in like manner as other property owned by the association.
     (5) The county clerk may charge a fee for
recording a statement under this section according to provisions of ORS 205.320
(4). [Formerly 94.022; 2001 c.756 §33]
RIGHTS AND
DUTIES OF DECLARANT
     100.170
Easement held by declarant.
Subject to the provisions of the declaration, a declarant has an easement
through the common elements as may be reasonably necessary for the purpose of
discharging any obligation of the declarant or exercising any special declarant
right, whether arising under the provisions of this chapter or reserved in the
declaration or bylaws. [Formerly 94.066]
     100.175
Reserve account for maintaining, repairing and replacing common elements;
reserve study; maintenance plan. (1) The declarant, on behalf of the association of unit owners, shall:
     (a) Conduct an initial reserve study as
described in subsection (3) of this section;
     (b) Prepare an initial maintenance plan as
described in subsection (4) of this section; and
     (c) Establish a reserve account as
provided in subsection (2) of this section.
     (2)(a) A reserve account shall be
established to fund major maintenance, repair or replacement of those common
elements all or part of which will normally require major maintenance, repair
or replacement in more than one and less than 30 years, for exterior painting
if the common elements include exterior painted surfaces, and for such other
items as may be required by the declaration or bylaws. The reserve account need
not include:
     (A) Items that can reasonably be funded
from the general budget or other funds or accounts of the association; or
     (B) A reserve for limited common elements
for which maintenance and replacement are the responsibility of one or more,
but less than all, unit owners under the provisions of the declaration or
bylaws.
     (b) The reserve account shall be
established in the name of the association of unit owners. The association is
responsible for administering the account and for making periodic payments into
the account.
     (c) The reserve portion of the initial
assessment determined by the declarant shall be based on:
     (A) The reserve study described in
subsection (3) of this section;
     (B) In the case of a conversion
condominium, the statement described in ORS 100.655 (1)(g); or
     (C) Other reliable information.
     (d) The reserve account must be funded by
assessments against the individual units for the purposes for which the reserve
account is established.
     (e) The assessment under this subsection
accrues from the time of the conveyance of the first individual unit assessed
as provided in ORS 100.530.
     (3)(a) The board of directors of the
association annually shall conduct a reserve study or review and update an
existing study to determine the reserve account requirements and may:
     (A) Adjust the amount of payments in
accordance with the study or review; and
     (B) Provide for other reserve items that
the board of directors, in its discretion, may deem appropriate.
     (b) The reserve study shall:
     (A) Identify all items for which reserves
are or will be established;
     (B) Include the estimated remaining useful
life of each item as of the date of the reserve study; and
     (C) Include for each item, as applicable,
an estimated cost of maintenance and repair and replacement at the end of the
itemÂ’s useful life.
     (4)(a) The board of directors shall
prepare a maintenance plan for the maintenance, repair and replacement of all
property for which the association has maintenance, repair or replacement
responsibility under the declaration or bylaws or this chapter. The maintenance
plan shall:
     (A) Describe the maintenance, repair and
replacement to be conducted;
     (B) Include a schedule for the
maintenance, repair and replacement;
     (C) Be appropriate for the size and
complexity of the maintenance, repair and replacement responsibility of the
association; and
     (D) Address issues that include but are
not limited to warranties and the useful life of the items for which the
association has maintenance, repair or replacement responsibility.
     (b) The board of directors shall review
and update the maintenance plan described under this subsection as necessary.
     (5)(a) Except as provided in paragraph (b)
of this subsection, the reserve study requirements under subsection (3) of this
section and the maintenance plan requirements under subsection (4) of this
section do not apply to a condominium consisting of one or two units, excluding
units used for parking, storage or other uses ancillary to a unit:
     (A) After the sale of the first unit to a
person other than a successor declarant, if the condominium is created on or
after September 27, 2007; or
     (B) If the condominium was created before
September 27, 2007, notwithstanding any requirement in the declaration or bylaws.
     (b) The reserve study requirements under
subsection (3) of this section and the maintenance plan requirements under
subsection (4) of this section apply to a flexible condominium or a staged
condominium created on or after September 27, 2007, if the condominium might in
the future consist of more than two units.
     (6)(a) If the declaration or bylaws
require a reserve account, the reserve study requirements of subsection (3) of
this section and the maintenance plan requirements of subsection (4) of this
section first apply to the association of a condominium recorded prior to
October 23, 1999:
     (A) Upon adoption of a resolution by the
board of directors in accordance with the bylaws providing that the
requirements of subsections (3) and (4) of this section apply to the
association; or
     (B) Upon submission to the board of
directors of a petition signed by a majority of unit owners mandating that the
requirements of subsections (3) and (4) of this section apply to the
association.
     (b) The reserve study and the maintenance
plan shall be completed within one year of the date of adoption of the
resolution or submission of the petition to the board of directors.
     (7)(a) Except as provided in paragraph (b)
of this subsection, the reserve account is to be used only for the purposes for
which reserves have been established and is to be kept separate from other
funds.
     (b) After the individual unit owners have
assumed administrative responsibility for the association under ORS 100.210, if
the board of directors has adopted a resolution, which may be an annual
continuing resolution, authorizing the borrowing of funds:
     (A) The board of directors may borrow
funds from the reserve account to meet high seasonal demands on the regular
operating funds or to meet unexpected increases in expenses.
     (B) Not later than the adoption of the
budget for the following year, the board of directors shall adopt by resolution
a written payment plan providing for repayment of the borrowed funds within a
reasonable period.
     (8) Restrictions on the use of the reserve
account do not prohibit its prudent investment subject to any constraints on
investment of association funds imposed by the declaration, bylaws or rules of
the association of unit owners.
     (9) Assessments paid into the reserve account
are the property of the association of unit owners and are not refundable to
sellers of units.
     (10) In addition to the authority of the
board of directors under subsection (3)(a) of this section, following turnover,
the association may:
     (a) On an annual basis, elect not to fund
the reserve account described in subsection (1) of this section by unanimous
vote of the owners; or
     (b) Elect to reduce or increase future
assessments for the reserve account described in subsection (1) of this section
by an affirmative vote of at least 75 percent of the owners. [Formerly 94.072;
1997 c.816 §7; 1999 c.677 §44; 2001 c.756 §34; 2003 c.569 §27; 2005 c.543 §2;
2007 c.409 §23]
WARRANTIES ON
NEW UNITS
     100.185
Express warranties; form; exclusion of implied warranties; exemption for consumer
products; claims. (1) The
declarant shall expressly warrant against defects in the plumbing, electrical,
mechanical, structural, and all other components of the newly constructed units
and common elements. Such warranty:
     (a) Shall exist on a unit and the related
limited common elements for not less than one year from the date of delivery of
possession of that unit by the declarant to the first unit owner other than the
declarant;
     (b) Shall exist on the general common
elements for not less than one year from the initial conveyance of title to a
unit by the declarant to a unit owner other than the declarant, or, in the case
of a staged or a flexible condominium, for not less than one year from such
initial conveyance of title or completion of the construction of the specific
general common element, whichever is later;
     (c) Shall be contained in the contract or
other agreement to purchase;
     (d) Shall be separate from, and in
addition to, any warranties provided by any other person;
     (e) Shall be in lieu of any implied
warranties by the declarant against defects in the plumbing, electrical,
mechanical, structural or other components of any newly constructed unit or
common elements; and
     (f) Shall name the association of unit
owners as an express beneficiary with regard to general common elements.
     (2) A written claim reasonably specifying
a breach of the warranty on the unit and the related limited common elements
must be delivered to the declarant before the expiration of such warranty. A
written claim reasonably specifying a breach of the warranty on the general
common elements must be delivered to the declarant within two years of
expiration of such warranty, but the claim must be for a defect existing prior
to the expiration of such warranty under this section. An action to enforce
such warranty shall not be commenced later than four years after expiration of
such warranty.
     (3) For the purposes of this section, “newly
constructed units and common elements” means:
     (a) Units and related limited common
elements:
     (A) That have been substantially completed
for less than three years; and
     (B) That have been occupied for less than
12 months.
     (b) General common elements:
     (A) That have been substantially completed
for less than three years; and
     (B) That were constructed
contemporaneously with units that have been occupied for less than 12 months.
     (4) The warranty required under subsection
(1) of this section is not required for consumer products as defined in 15
United States Code 2301 (1). [Formerly 94.017; 1999 c.677 §45; 2001 c.756 §35]
DECLARANT
CONTROL; TURNOVER
     100.200
Declarant control of association. (1) Subject to subsection (2) of this section, the declaration or
bylaws may specifically provide for a period of declarant control of the
association of unit owners, during which period a declarant or person
designated by the declarant may appoint and remove officers and members of the
board of directors and exercise powers and responsibilities otherwise assigned
by the declaration, bylaws or the provisions of this chapter to the
association, the officers or the board of directors. No formal or written proxy
or power of attorney need be required of the unit owners to vest the declarant
with such authority. Declarant control may be achieved by allocating in the
declaration greater voting rights to a unit owned by the declarant.
     (2) The declaration or bylaws may not
provide for a period of administrative control of the association of unit
owners by the declarant for a period exceeding:
     (a) In a single stage condominium the
earlier of:
     (A) Three years from the date the first
unit is conveyed; or
     (B) The date of conveyance to persons
other than the declarant of 75 percent of the units.
     (b) In a staged or flexible condominium
the earlier of:
     (A) Seven years from the date the first
unit is conveyed; or
     (B) The date of conveyance to persons
other than the declarant of 75 percent of the units which may be created or
annexed under ORS 100.125 or 100.150, whichever is applicable.
     (3) A declarant may voluntarily relinquish
any rights reserved in the declaration or bylaws under subsection (1) of this
section.
     (4) Upon the expiration of any period of
declarant control reserved in the declaration or bylaws under subsection (1) of
this section, such right shall automatically pass to the unit owners, including
the declarant if the declarant then owns one or more units in the condominium.
     (5) A declaration or bylaws may not be
amended to increase the scope of any rights reserved in the declaration or
bylaws under subsection (1) of this section without the consent of all unit
owners.
     (6) The limitations specified in
subsection (2) of this section shall not limit any right reserved by the
declarant under ORS 100.105 (2) or (7), 100.125 or 100.150 or any other special
declarant right which does not relate to administrative control of the
association by the declarant including, but not limited to, the right to
require that the declaration or bylaws may not be amended without the declarantÂ’s
consent until a stated date, the expiration of a stated number of years or the
occurrence of a stipulated event.
     (7) The limitations of subsection (2) of
this section do not apply to a condominium or condominium units committed to a
timeshare plan as defined in ORS 94.803. [Formerly 94.078]
     100.205
Transitional committee; notice of meeting for formation. A transitional committee shall be
established as provided in this section in a single stage condominium
consisting of at least 20 units and in a staged or flexible condominium if the
number of units which the declarant may submit to the provisions of this
chapter under ORS 100.125 or 100.150 totals at least 20.
     (1) Unless the turnover meeting has been
held, the declarant shall call a meeting of the unit owners for the purpose of
forming a transitional committee in accordance with the bylaws of the
condominium. The declarant shall call such meeting:
     (a) In a single stage condominium, within
60 days of conveyance to persons other than the declarant of 50 percent of the
units.
     (b) In a staged or flexible condominium,
within 60 days of conveyance to persons other than the declarant of 50 percent
of the total number of units which the declarant may submit to the provisions
of this chapter under ORS 100.125 or 100.150.
     (2) The transitional committee shall be
advisory only and shall consist of two or more members selected by unit owners
other than the declarant and may include not more than one representative of
the declarant. The members shall serve until the turnover meeting. The function
of the committee shall be that of enabling ease of transition from control of
the administration of the association of unit owners by the declarant to
control by the unit owners. The committee shall have access to the information,
documents and records which the declarant must turn over to the unit owners
under ORS 100.210 (5).
     (3) The declarant shall give notice of the
meeting required under subsection (1) of this section in accordance with the
bylaws of the condominium to each unit owner at least seven but not more than
50 days prior to the meeting. The notice shall state the purpose of the meeting
and the time and place where it is to be held.
     (4) If the meeting required under
subsection (1) of this section is not called by the declarant within the time
specified, the meeting may be called and notice given by a unit owner.
     (5) If the owners other than the declarant
do not select members for the committee under subsection (2) of this section,
the declarant shall have no further responsibility to form the committee. [Formerly
94.084]
     100.210
Turnover meeting; notice; transfer of control. (1) A turnover meeting shall be called by
the declarant within 90 days of the expiration of any period of declarant
control reserved in the declaration or bylaws under ORS 100.200. If no control
has been reserved, the declarant shall call the turnover meeting within 90 days
of the earlier of:
     (a) In a single stage condominium, three
years from the date of conveyance of the first unit to a person other than a
successor declarant or conveyance of 50 percent of the units.
     (b) In a staged or flexible condominium,
seven years from the date of conveyance of the first unit to a person other
than the declarant or conveyance to persons other than a successor declarant of
50 percent of the total number of units which the declarant may submit to the
provisions of this chapter under ORS 100.125 or 100.150.
     (2) The declarant shall give notice of the
turnover meeting in accordance with the bylaws of the condominium to each unit
owner at least 10 but not more than 50 days prior to the meeting. The notice
shall state the purpose of the meeting and the time and place where it is to be
held.
     (3) If the meeting required under
subsection (1) of this section is not called by the declarant within the time
specified, the meeting may be called and notice given by a unit owner or any
first mortgagee of a unit.
     (4) At the turnover meeting:
     (a) The declarant shall relinquish control
of the administration of the association of unit owners and the unit owners
shall assume the control;
     (b) If a quorum of the unit owners is
present, the unit owners shall elect not fewer than the number of directors
sufficient to constitute a quorum of the board of directors in accordance with
the declaration or bylaws of the condominium; and
     (c) The declarant shall deliver to the
association the items specified in subsection (5) of this section.
     (5) At the turnover meeting the declarant
shall deliver to the association all property of the unit owners and the
association of unit owners held or controlled by the declarant including, but
not limited to, the following items, if applicable:
     (a) The original or a photocopy of the
recorded declaration and bylaws of the condominium and any supplements and
amendments thereto.
     (b) A copy of the articles of
incorporation.
     (c) The minute books, including all
minutes, and other books and records of the association.
     (d) The reserve study, the maintenance
plan and all updates described in ORS 100.175 and other sources of information
that serve as a basis for calculating reserves in accordance with ORS 100.175.
     (e) Any rules and regulations which have
been promulgated.
     (f) Resignations of officers and members
of the board of directors who are required to resign because of the expiration
of any period of declarant control reserved under ORS 100.200.
     (g) A financial statement. The financial
statement:
     (A) Must consist of a balance sheet and an
income and expense statement for the preceding 12-month period or the period
following the recording of the declaration, whichever period is shorter.
     (B) Must be reviewed, in accordance with
the Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants, by an independent certified
public accountant licensed in the State of
     (h) Association funds or control thereof,
including, but not limited to, funds for reserve required under ORS 100.530
(3)(b) and any bank signature cards.
     (i) All tangible personal property that is
property of the association and an inventory of such property.
     (j) A copy of the following, if available:
     (A) The as-built architectural,
structural, engineering, mechanical, electrical and plumbing plans.
     (B) The original specifications indicating
thereon all material changes.
     (C) The plans for underground site
service, site grading, drainage and landscaping together with cable television
drawings.
     (D) Any other plans and information
relevant to future repair or maintenance of the property.
     (k) Insurance policies.
     (L) Copies of any occupancy permits which
have been issued for the condominium.
     (m) Any other permits issued by
governmental bodies applicable to the condominium in force or issued within one
year prior to the date the unit owners assume control of the administration of
the association of unit owners.
     (n) A list of the general contractor and
the subcontractors responsible for construction or installation of the major
plumbing, electrical, mechanical and structural components of the common
elements.
     (o) A roster of unit owners and their
addresses and telephone numbers, if known, as shown on the records of the
declarant.
     (p) Leases of the common elements and any
other leases to which the association is a party.
     (q) Employment or service contracts in
which the association is one of the contracting parties or service contracts in
which the association or the unit owners have an obligation or responsibility,
directly or indirectly, to pay some or all of the fee or charge of the person
performing the service.
     (r) Any other contracts to which the
association of unit owners is a party.
     (6) In order to facilitate an orderly
transition, during the three-month period following the turnover meeting, the
declarant or an informed representative shall be available to meet with the
board of directors on at least three mutually acceptable dates to review the
documents delivered under subsection (5) of this section.
     (7) If the declarant has complied with
this section, unless the declarant otherwise has sufficient voting rights as a
unit owner to control the association, the declarant is not responsible for the
failure of the unit owners to elect the number of directors sufficient to
constitute a quorum of the board of directors and assume control of the
association in accordance with subsection (4) of this section. The declarant
shall be relieved of any further responsibility for the administration of the association
except as a unit owner of any unsold unit.
     (8) If the unit owners present do not
constitute a quorum or the unit owners fail to elect the number of directors
sufficient to constitute a quorum of the board of directors at the turnover
meeting held in accordance with subsection (1) of this section:
     (a) At any time before the election of the
number of directors sufficient to constitute a quorum, a unit owner or first
mortgagee of a unit may call a special meeting for the purpose of election of
directors and shall give notice of the meeting in accordance with the notice
requirements in the bylaws for special meetings. The unit owners and first
mortgagees present at the special meeting shall select a person to preside over
the meeting.
     (b) A unit owner or first mortgagee of a
unit may request a court to appoint a receiver as provided in ORS 100.418. [Formerly
94.091; 1999 c.677 §46; 2001 c.756 §36; 2003 c.803 §21; 2007 c.409 §24]
SPECIAL
DECLARANT RIGHTS
     100.220
Liabilities and obligations arising from transfer of special declarant right;
exemptions. (1) As used in
this section, “affiliate” means any person who controls a transferor or
successor declarant, is controlled by a transferor or successor declarant or is
under common control with a transferor or successor declarant. A person “controls”
or “is controlled by” a transferor or successor declarant if the person:
     (a) Is a general partner, officer,
director or employee;
     (b) Directly or indirectly or acting in
concert with one or more other persons, or through one or more subsidiaries,
owns, controls, holds with power to vote, or holds proxies representing more
than 20 percent of the voting interests of the transferor or successor
declarant;
     (c) Controls in any manner the election of
a majority of the directors; or
     (d) Has contributed more than 20 percent
of the capital of the transferor or successor declarant.
     (2) Upon the transfer of any special
declarant right, the liabilities and obligations of a transferor are as
follows:
     (a) A transferor is not relieved of any
obligation or liability arising before the transfer and remains liable for
warranty obligations imposed under ORS 100.185. Lack of privity does not
deprive any unit owner of standing to bring an action to enforce any obligation
of the transferor.
     (b) If a transferor retains any special
declarant right, or if a successor declarant is an affiliate of the transferor,
the transferor is subject to liability for all obligations and liabilities
imposed on a declarant by the provisions of this chapter or by the declaration
or bylaws arising after the transfer and is jointly and severally liable with
the successor declarant for the liabilities and obligations of the successor
declarant which relate to the condominium.
     (c) A transferor who retains no special
declarant right has no liability for any act or omission or any breach of a
contractual or warranty obligation arising from the exercise of a special
declarant right by a successor declarant who is not an affiliate of the
transferor.
     (3) Upon transfer of any special declarant
right, the liabilities and obligations of a successor declarant are as follows:
     (a) A successor declarant who is an
affiliate of the transferor is subject to all obligations and liabilities
imposed on a declarant by the provisions of this chapter or by the declaration
or bylaws.
     (b) A successor declarant who is not an
affiliate of the transferor shall not be liable for any misrepresentations or
warranties made or required to be made, including without limitation warranties
required under ORS 100.185, by the declarant or previous successor declarant or
for any breach of fiduciary obligation by such person. Such a successor
declarant, however, shall:
     (A) Comply with any provisions of the
declaration and bylaws which pertain to such successor declarantÂ’s ownership of
the unit or units and the exercise of any special declarant right;
     (B) Comply with the provisions of ORS
100.015 and 100.635 to 100.910 in connection with the sale of any unit or
units, except as provided in ORS 100.665; and
     (C) Give the warranties described in ORS
100.185 only with respect to common elements or units constructed by the
successor declarant. [Formerly 94.097]
     100.225
Acquisition of special declarant rights by successor declarant; exceptions. (1) Except as otherwise provided in
subsections (2) and (3) of this section, a developer, vendor under a land sale
contract, mortgagee of a mortgage or beneficiary of a trust deed affecting the
declarantÂ’s interest in the property shall acquire all special declarant rights
of the transferor upon transfer by the declarant or prior successor declarant
of all of such transferorÂ’s interest in the condominium, unless:
     (a) The conveyance evidences an intent not
to transfer any special declarant rights;
     (b) An instrument executed by the
transferor and the transferee evidences an intent not to transfer any special
declarant rights and is recorded in the office of the recording officer of
every county in which the property is located; or
     (c) The transferee executes an instrument
disclaiming any right to exercise any special declarant rights and such
instrument is recorded in the office of the recording officer of every county
in which the property is located.
     (2) A transferee under subsection (1) of
this section shall acquire less than all special declarant rights if:
     (a) The conveyance from the transferor or
an instrument executed by the transferor and the transferee evidences an intent
to transfer less than all special declarant rights and states the specific right
being transferred, and such instrument is recorded in the office of the
recording officer of every county in which the property is located; or
     (b) The transferee executes an instrument
disclaiming specific special declarant rights and the instrument is recorded in
the office of the recording officer of every county in which the property is
located.
     (3) When a transferee acquires all of the
declarantÂ’s interest in a condominium in which the declarant has reserved the
right to add additional stages under ORS 100.125, the transferee shall not
acquire the right to annex additional stages to the condominium unless the
transferee simultaneously acquires from the declarant property adjacent to the
condominium which is entitled to be annexed to the condominium, or unless the
conveyance evidences an intent to transfer such right to the transferee.
     (4) A declarant or a successor declarant
may transfer all or less than all of the transferorÂ’s special declarant rights
to a transferee, whether or not any interest in real property is conveyed, by
an instrument executed by the declarant or successor declarant and the
transferee evidencing an intent to transfer all or specific special declarant
rights, which instrument shall be recorded in the office of the recording
officer of every county in which the property is located. If the transfer is
not subject to subsection (1) of this section, it shall also bear the written
consent of any holder of a blanket encumbrance on the condominium. [Formerly
94.103]
DOCUMENT
FILING
     100.250
Documents required to be filed with Real Estate Agency; fees. (1) The following shall be delivered to the
Real Estate Agency for filing on behalf of the association in accordance with
ORS 100.260 (5):
     (a) A Condominium Information Report described
in ORS 100.260 (1) by the declarant not later than 90 days after the
declaration is recorded under ORS 100.100 or by the board of directors if
required under ORS 100.275.
     (b) The Annual Report described in ORS
100.260 (2) by the declarant until the turnover meeting and the board of
directors thereafter every year not later than the report date which shall be
the anniversary date of filing the Condominium Information Report.
     (c) An amendment to the reports required
under this subsection by the declarant until the turnover meeting and the board
of directors thereafter, within 30 days after there is a change in the
information contained in a report.
     (2) The Real Estate Agency shall collect
the following fees for the documents delivered for filing:
______________________________________________________________________________
                 Document                                    Fee
     (a) Condominium Information Report    $100
     (b) Annual Report                                   $
25
     (c) Amendment                                      Â
$ 75
     (d) Application for
          Termination Statement                      Â
$ 75
     (e) Statement of Resignation                 Â
$ 75
______________________________________________________________________________
     (3) Any fee paid under subsection (2) of
this section or ORS 100.275 may be a common expense of the condominium. [1989
c.595 §38; 1991 c.132 §13; 1995 c.31 §4; 2001 c.756 §37]
     Note: 100.250 to 100.290 were added to and made a
part of ORS 100.005 to 100.910 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for further
explanation.
     100.255
Processing of documents filed with Real Estate Agency; procedures. (1) If after review the Real Estate Agency
determines that a report or amendment submitted for filing under ORS 100.250
(1) satisfies the requirements of ORS 100.260, and all fees have been paid, the
Real Estate Agency shall file the document and designate the filing “current.”
     (2) The Real Estate Agency files a
document by indicating thereon that it has been filed by the Real Estate Agency
and the date of filing. The time of filing shall be considered to be 12:01 a.m.
on that date. After filing a document, the Real Estate Agency shall return a
copy to the association.
     (3) If the Real Estate Agency refuses to
file a document, the Real Estate Agency shall return it to the association
within 10 business days after the document was received by the Real Estate
Agency, together with a brief written explanation of the reason or reasons for
the refusal.
     (4) The Real Estate Agency’s duty to file
documents under this section and ORS 100.250 is ministerial. The Real Estate
Agency is not required to verify or inquire into the legality or truth of any
matter included in any document delivered to the Real Estate Agency for filing.
The Real Estate AgencyÂ’s filing or refusing to file a document does not:
     (a) Affect the validity or invalidity of
the document in whole or in part; or
     (b) Relate to the correctness or
incorrectness of information contained in the document.
     (5) The Real Estate Agency’s refusal to
file a document does not create a presumption that the document is invalid or
that information contained in the document is incorrect.
     (6) If the Real Estate Agency refuses to
file a document delivered to the Real Estate Agency for filing, the
association, in addition to any other legal remedy which may be available, shall
have the right to appeal from such final order pursuant to the provisions of
ORS 183.484. [1989 c.595 §39; 1995 c.31 §5]
     Note: See note under 100.250.
     100.260
Condominium Information and Annual Reports; contents; fees. (1) The Condominium Information Report
required under ORS 100.250 (1)(a) shall set forth:
     (a) The name of the association;
     (b) The name of the condominium and the
county in which the condominium is located;
     (c) The mailing address, including the
street and number, if any, and county of the association;
     (d) The date the condominium declaration
was recorded and the recording index numbers;
     (e) The name and residence or business
address, including the street and number, of the person designated as agent to
receive service of process in cases provided in ORS 100.550 (1) and any other
legal proceeding relating to the condominium or association; and
     (f) The number and type of units as
follows:
     No._____ Living Units
     No._____ Commercial/Office Units
     No._____ Other (describe) ________
     ________________________
     (2) The Annual Report required under ORS
100.250 (1)(b) shall set forth:
     (a) The information required under
subsection (1)(a), (b), (c) and (e) of this section;
     (b) The names and addresses of the
chairperson and secretary of the association; and
     (c) If the designated agent is changed, a
statement that the new agent has consented to the appointment.
     (3) The amendment required under ORS
100.250 (1)(c) shall set forth:
     (a) The name of the association as shown
on the current records of the Real Estate Agency;
     (b) The name of the condominium and county
in which the condominium is located;
     (c) A statement of the information as
changed; and
     (d) If the current designated agent is to
be changed, the name of the new designated agent and residence or business
address, including the street and number, and a statement that the new agent
has consented to the appointment.
     (4) The filing by the Real Estate Agency
of an amendment which changes the designated agent shall terminate the existing
designated agent on the effective date of the filing and establish the newly
appointed designated agent as that of the association.
     (5) The reports and amendment described in
this section and an application for termination described in ORS 100.280 shall
be made on forms prescribed and furnished by the Real Estate Agency and must be
accompanied by the correct filing fee and shall:
     (a) Contain information current as of 30
days before delivery for filing;
     (b) Be executed by the designated agent
and until the turnover meeting by the declarant and thereafter by the
chairperson or secretary of the association;
     (c) State beneath or opposite the
signature the name of the person and the capacity in which the person signs;
and
     (d) Contain any additional identifying
information that the Real Estate Agency may require by rule. [1989 c.595 §40;
1995 c.31 §6; 2001 c.756 §38]
     Note: See note under 100.250.
     100.265
Annual Report; notification; filing. (1) Not less than 30 days before the report date, the Real Estate
Agency shall mail the Annual Report form described in ORS 100.260 (2) to the
association at the mailing address shown for the association in the current
records of the office and shall indicate the date by which the report is due.
Failure of the association to receive the Annual Report form from the Real
Estate Agency shall not relieve the association of its duty to deliver for
filing to the office as required under ORS 100.250 (1)(c).
     (2) After the report date, if no Annual
Report has been delivered for filing, the Real Estate Agency shall send to the
designated agent a notice of delinquency notifying the association that the
filing shall be designated “delinquent” unless a report is filed within 45 days
after the mailing of such notice.
     (3) When an association has been given a
notice of delinquency in accordance with subsection (2) of this section and
failed to correct the delinquency within 45 days:
     (a) The Real Estate Agency shall designate
the filing “delinquent.”
     (b) If within 30 days after written notice
has been given to the association by the opposing party in any suit or action
to which the association is a party, the association has not complied with the
filing requirements of ORS 100.250 (1), the association may not continue to
prosecute or defend such suit or action until the filing is designated “current”
as provided in ORS 100.255. A copy of such notice shall be delivered to the
Real Estate Agency. The Real Estate Agency shall retain such copy with the
filing for the association for a period of not less than 12 months. [1989 c.595
§41; 1995 c.31 §7]
     Note: See note under 100.250.
     100.275
Application of ORS 100.250 to 100.280. (1) Subject to ORS 100.550 (3), ORS 100.250 to 100.280, including the
filing of a Condominium Information Report described in ORS 100.260 (1), apply
to property submitted to the provisions of this chapter before October 3, 1989,
if:
     (a) The board of directors of the
association receives a written request to comply with such sections from at
least one unit owner or holder of a first mortgage or deed of trust on a unit;
     (b) The board of directors of the
association adopts a resolution to comply with such sections in accordance with
the bylaws;
     (c) The association is a party to a suit
or action, the person designated in the declaration under ORS 100.105 (1)(L),
the chairperson or secretary receives written notice to comply with such
sections from any other party to such suit or action. A copy of the notice
shall be delivered to the Real Estate Agency. The Real Estate Agency shall
provide a copy of the filed report to the requesting party and may charge the
association a fee for cost of such action. If the association fails to deliver
for filing such report, the provisions of ORS 100.265 (3) shall apply; or
     (d) A filing is required to comply with
the requirements of ORS 100.120, 100.135 or 100.450.
     (2) The Condominium Information Report
required under subsection (1) of this section shall be executed by the
chairperson or secretary of the association and the designated agent. [1989
c.595 §42; 1995 c.31 §8; 2001 c.756 §60; 2007 c.410 §18]
     Note: See note under 100.250.
     100.280
Termination of filing Condominium Information Report. (1) An association may apply to the Real
Estate Agency to terminate a filing under ORS 100.250 (1). The application
shall satisfy the requirements of ORS 100.260 (5) and set forth:
     (a) The name of the association as shown
on the current records of the Real Estate Agency;
     (b) The name of the condominium and county
in which the condominium is located;
     (c) The name and residence or business
address, including the street and number, of a designated agent to whom a
person initiating any proceeding may direct service for a period of two years;
and
     (d) A commitment to notify the Real Estate
Agency for a period of two years from the date of termination of any change of
the person or address stated in paragraph (c) of this subsection.
     (2) A copy of the instrument of
termination, evidencing the recording index numbers, recorded under ORS
100.600, shall be delivered with the application.
     (3) Upon filing by the Real Estate Agency
of the application to terminate the filing, the duty of the association to
comply with ORS 100.250 (1) shall cease. [1989 c.595 §43; 1995 c.31 §9]
     Note: See note under 100.250.
     100.285
Resignation of designated agent; procedures; effective date. (1) The designated agent of the association
may resign as agent by delivering a signed statement of resignation to the Real
Estate Agency together with the filing fee prescribed in ORS 100.250 and giving
notice in the form of a copy of the statement to the association. The statement
shall include the name of the association and the name of the condominium and
the county in which the condominium is located.
     (2) Upon receipt of the statement of
resignation in proper form and the correct fee, the Real Estate Agency shall
file the resignation statement. The copy of the statement given under
subsection (1) of this section shall be mailed to the association at the
mailing address shown for the association in the current records of the office.
For purposes of this subsection, written notice is effective at the earliest of
the following:
     (a) When received;
     (b) Five days after its deposit in the
United States mail, as evidenced by the postmark, if mailed postpaid and
correctly addressed; or
     (c) On the date shown on the return
receipt, if sent by registered or certified mail, return receipt requested and
the receipt is signed by or on behalf of the addressee.
     (3) The agency appointment is terminated
on the 31st day after the date on which the statement of resignation was filed
by the Real Estate Agency unless the association sooner appoints a successor
designated agent as provided in ORS 100.260 (4), thereby terminating the
capacity of the prior agent.
     (4) If by the 31st day after the date on
which the statement of resignation was filed by the Real Estate Agency, the
association has failed to submit for filing an amendment appointing a
designated agent, the Real Estate Agency shall designate the filing “delinquent”
and the provisions of ORS 100.265 (3) shall apply. [1989 c.595 §43a; 1993 c.190
§16; 1995 c.31 §10]
     Note: See note under 100.250.
     100.290
Rules. The Real Estate
Agency may adopt rules as are necessary or proper for the administration of ORS
100.250 to 100.280. [1989 c.595 §44; 1995 c.31 §11]
     Note: See note under 100.250.
CONVERSION
CONDOMINIUMS
     100.300
Inapplicability of ORS 100.301 to 100.320 to transient lodgings. ORS 100.301 to 100.320 do not apply to units
rented as transient lodgings at a hotel, motel or inn and do not apply to
negotiations, arrangements or agreements for such transient occupancy of the
units. [Formerly 94.109]
     100.301
Definitions for ORS 100.301 to 100.320. As used in ORS 100.301 to 100.320, “dwelling unit” and “tenant” have
the meanings given those terms in ORS 90.100. [2007 c.410 §10]
     100.305
Conversion condominium; notice.
(1) A declarant of a conversion condominium shall give each of the existing
tenants of any building which the declarant intends to submit to the provisions
of this chapter notice of the conversion at least 120 days before the
conversion condominium is submitted to the provisions of this chapter.
Thereafter, until the property is submitted to the provisions of this chapter,
the declarant shall provide a copy of such notice to any new tenant before the
commencement of the tenancy. The notice of conversion shall:
     (a) State that the declarant intends to
create a conversion condominium and include general information relating to the
nature of condominium ownership.
     (b) State that the notice does not
constitute a notice to terminate the tenancy.
     (c) State whether there will be a
substantial alteration of the physical layout of the unit.
     (d) State whether the declarant intends to
offer the unit for sale and, if so:
     (A) Set forth the rights of the tenant
under ORS 100.310 (1) to (3), including the time available for the declarant to
make an offer to sell and for the tenant to respond;
     (B) Set forth a good faith estimate of the
approximate price range for which the unit will be offered for sale to the
tenant under ORS 100.310 (1) and (2);
     (C) Set forth a good faith estimate of the
monthly operational, maintenance and any other common expenses or assessments
appertaining to the unit;
     (D) State that financial assistance for
purchasing the unit may be available from a local governing body, the Housing
and Community Services Department or a regional housing center;
     (E) Give contact information for the local
regional housing center or, if no regional housing center exists, for the
Housing and Community Services Department; and
     (F) State that the landlord may not
terminate the tenancy without cause if the termination would take effect before
the end of the 120-day period described in this subsection or the 60-day period
described in ORS 100.310.
     (e) Include information in substantially
the following form:
______________________________________________________________________________
NOTICE OF RENT INCREASE
RESTRICTIONS
     During the 120 days following the receipt
of this notice, your landlord may increase your rent only as follows:
     If your rental agreement says that your
rent will increase on a particular date and by a definite amount, the landlord
may increase the rent as provided in your rental agreement.
     If your rental agreement allows rent
increases but does not say that your rent will increase on a particular date
and by a definite amount, the landlord may not increase your rent by a
percentage that is more than the percentage increase in the general cost of
living. An increase in the general cost of living is measured by the percentage
increase in the Portland-Salem Consumer Price Index for All Urban Consumers for
All Items as reported by the United States Bureau of Labor Statistics.
______________________________________________________________________________
     (f) Be hand delivered to the dwelling unit
of the tenant or sent to the tenant at the address of the dwelling unit by
certified mail, return receipt requested.
     (2) A notice of conversion given under
subsection (1) of this section:
     (a) Shall be for the sole purpose of
providing the tenant with general information regarding the anticipated cost of
acquisition of the unit and estimated monthly expenses.
     (b) Does not obligate the declarant to
submit the property to the provisions of this chapter.
     (c) Does not constitute an offer to sell
the unit to the tenant or an offer to sell at a particular price.
     (d) Is not a limitation on monthly common
expenses or assessments.
     (3) The notice of conversion given under
subsection (1) of this section must be delivered to the tenant at least 30 days
prior to the presentation of an offer to sell under ORS 100.310 (1) and (2).
     (4) The declarant shall send a copy of the
notice of conversion to the mayor of the city in which the conversion
condominium is located or, if the conversion condominium is not located in a
city, to the county commission or county court.
     (5) A notice of conversion that does not
contain the information required by subsection (1)(a) to (e) of this section,
or that is not sent to the mayor, county commission or county court as required
by subsection (4) of this section, does not begin the 120-day period required
by subsection (1) of this section. Notwithstanding any prior delivery of a
deficient notice of conversion, the 120-day period required by subsection (1)
of this section does not begin until the date a valid notice is delivered. A
tenant, mayor, county commission or county court entitled to notice may bring
an action for injunctive relief to prevent the conversion until the declarant
has complied with the notice requirement.
     (6) The declaration may be recorded prior
to the end of the 120-day period required under subsection (1) of this section
with the written consent of all tenants who received the notice of conversion
less than 120 days before the date of such consent.
     (7) The requirement under subsection (1)
of this section to provide a copy of the notice of conversion to new tenants
shall not extend the 120-day period nor shall such tenantÂ’s consent be required
to record the declaration prior to the end of the 120-day period as provided
for under subsection (6) of this section.
     (8) A notice of conversion does not
constitute a notice to terminate the tenancy. [Formerly 94.116; 2007 c.705 §1]
     100.310
Rights of tenants in conversion. (1) Prior to the sale of any dwelling unit which is to be retained as
a unit in the conversion condominium without substantial alteration in its
physical layout, the declarant shall first offer to sell the respective unit to
the tenant who occupies the unit. The offer shall:
     (a) Terminate 60 days after its receipt or
upon written rejection of the offer by the tenant, whichever occurs earlier.
     (b) Be accompanied by a copy of all
applicable disclosure statements issued by the Real Estate Commissioner
pursuant to ORS 100.700.
     (c) Not constitute a notice to terminate
the tenancy.
     (2) The tenant’s dwelling unit may not be
shown to any prospective purchasers of a conversion condominium unit without
the tenantÂ’s permission before the termination of the tenancy.
     (3) The declarant shall not sell the unit
to a person other than the tenant during the 60 days following the termination
of an offer to the tenant under subsections (1) and (2) of this section at a
price or on terms more favorable to the purchaser than the price or terms
offered to the tenant.
     (4) After the property has been submitted
to the provisions of the Oregon Condominium Act, the declarant, until a unit is
offered for sale in accordance with subsections (1) and (2) of this section,
shall notify in writing any prospective tenant, prior to the commencement of
the tenancy, that the property has been submitted to the provisions of the
Oregon Condominium Act and the rights of a tenant under subsections (1) to (3)
of this section. [Formerly 94.122; 1997 c.816 §8]
     100.315
Improvements in conversion condominium during notice period. (1) The declarant may not begin improvements
or rehabilitation or cause improvements or rehabilitation to be undertaken in a
conversion condominium unit without the tenantÂ’s permission during the 120-day
notice period prescribed by ORS 100.305 (1).
     (2) The declarant may begin improvements
or rehabilitation or cause improvements or rehabilitation to be undertaken in
the general common elements during the 120-day notice period. Improvements to
or rehabilitation of general common elements may be conducted only between the
hours of 8 a.m. and 7 p.m. Unless the declarant and tenant agree otherwise, the
declarant must allow each tenant safe and ready ingress to and egress from the
tenantÂ’s dwelling unit during the improvement or rehabilitation work.
     (3) A tenant may bring an action against a
declarant that violates subsection (2) of this section to recover the greater
of actual damages or the equivalent of one monthÂ’s dwelling unit rent. [Formerly
94.128; 2007 c.705 §2]
     100.320
Authority of city or county to require developer to pay tenant moving expenses. A city or county may adopt an ordinance that
requires a declarant to pay the moving expense of a tenant vacating a
conversion condominium unit. [Formerly 94.134]
ASSOCIATION OF
UNIT OWNERS; MANAGEMENT OF PROPERTY; ENCUMBRANCES; CONVEYANCES
     100.405
Association of unit owners; powers; granting of interest in common elements;
dispute resolution. (1)(a)
An association of unit owners shall be organized to serve as a means through
which the unit owners may take action with regard to the administration,
management and operation of the condominium. The association of a condominium
created on or after September 27, 2007, shall be organized as a corporation for
profit or nonprofit corporation or, if the condominium consists of not more
than four units, excluding units used for parking, storage or other use
ancillary to a unit, as an unincorporated association. If the association is
incorporated, the name of the association shall include the complete name of
the condominium.
     (b) Notwithstanding a provision in the
declaration or bylaws of a condominium created before September 27, 2007, that
states that the association shall be unincorporated or that requires approval
of owners to incorporate as a nonprofit corporation under ORS chapter 65, an
unincorporated association may be incorporated as a nonprofit corporation under
ORS chapter 65 if the board of directors adopts a resolution that states the
association will be incorporated.
     (2) Membership in the association of unit
owners shall be limited to unit owners.
     (3) The affairs of the association shall
be governed by a board of directors as provided for in the bylaws adopted under
ORS 100.410.
     (4) Subject to the provisions of the
condominiumÂ’s declaration and bylaws, and whether or not the association is
unincorporated, the association may:
     (a) Adopt and amend bylaws and rules and
regulations;
     (b) Adopt and amend budgets for revenues,
expenditures and reserves and levy and collect assessments for common expenses
from unit owners;
     (c) Hire and terminate managing agents and
other employees, agents and independent contractors;
     (d) Defend against any claims, proceedings
or actions brought against it;
     (e) Subject to subsection (11) of this
section, initiate or intervene in litigation or administrative proceedings in
its own name, and without joining the individual unit owners, in the following:
     (A) Matters relating to the collection of
assessments and the enforcement of declarations and bylaws;
     (B) Matters arising out of contracts to
which the association is a party;
     (C) Actions seeking equitable or other
nonmonetary relief regarding matters that affect the common interests of the
unit owners, including but not limited to the abatement of nuisance;
     (D) Matters relating to or affecting
common elements, including but not limited to actions for damage, destruction,
impairment or loss of use of any common element;
     (E) Matters relating to or affecting the
units or interests of unit owners including but not limited to damage,
destruction, impairment or loss of use of a unit or portion thereof, if:
     (i) Resulting from a nuisance or a defect
in or damage to a common element; or
     (ii) Required to facilitate repair to any
common element; and
     (F) Any other matter to which the
association has standing under law or pursuant to the declaration, bylaws or
any articles of incorporation;
     (f) Make contracts and incur liabilities;
     (g) Regulate the use, maintenance, repair,
replacement and modification of common elements;
     (h) Cause additional improvement to be
made as a part of the common elements;
     (i) Acquire by purchase, lease, devise,
gift or voluntary grant real or personal property or any interest therein and
take, hold, possess and convey real or personal property or any interest
therein;
     (j) Impose and receive any payments, fees
or charges for the use, rental or operation of the common elements;
     (k) Impose charges for late payments of
assessments, attorney fees for collection of assessments and, after giving
written notice and an opportunity to be heard, levy reasonable fines for
violations of the declaration, bylaws and rules and regulations of the
association, provided that the charge imposed or fine levied by the association
is based:
     (A) On a schedule contained in the
declaration or bylaws, or an amendment to either that is delivered to each
unit, mailed to the mailing address of each unit or mailed to the mailing
addresses designated in writing by the owners; or
     (B) On a resolution adopted by the board
of directors or the association that is delivered to each unit, mailed to the
mailing address of each unit or mailed to the mailing addresses designated by
the owners in writing;
     (L) Adopt rules regarding the termination
of utility services paid for out of assessments of the association and access
to and use of recreational and service facilities available to unit owners that
must provide for written notice and an opportunity to be heard before the
association may terminate the rights of any owners to receive such benefits or
services until the correction of any violation covered by the rule has
occurred;
     (m) Impose reasonable charges for the
preparation and recordation of amendments to the declaration or statements of
assessments;
     (n) Assign its right to future income,
including the right to receive common expense assessments;
     (o) Provide for the indemnification of its
officers and executive board, as may be limited by ORS 61.218 (3)(d) (1987
Replacement Part), and maintain directorsÂ’ and officersÂ’ liability insurance;
     (p) Exercise any other powers conferred by
the declaration or bylaws;
     (q) Exercise all other powers that may be
exercised in this state by any such association; and
     (r) Exercise any other powers determined
by the association to be necessary and proper for the governance and operation
of the association.
     (5) Subject to subsection (6) of this
section, unless expressly limited or prohibited by the declaration, the
association has the authority to grant, execute, acknowledge and deliver on
behalf of the unit owners leases, easements, rights of way, licenses and other
similar interests affecting the general common elements and consent to vacation
of roadways within and adjacent to the condominium.
     (6)(a)(A) Except as provided in
subparagraph (B) of this paragraph, the granting of a lease, easement, right of
way, license or other similar interest pursuant to subsection (5) of this
section shall be first approved by at least 75 percent of owners. Unit owner
approval may be solicited by any means the board of directors determines is
reasonable and need not be at a meeting of the association.
     (B) Unless the declaration otherwise
provides:
     (i) The granting of a lease, easement,
right of way, license or other similar interest affecting the general common
elements for a term of two years or less shall require the approval of a
majority of the board of directors.
     (ii) The granting of a lease, easement,
right of way, license or other similar interest affecting the general common
elements for a term of more than two years to a public body, as defined in ORS
174.109, or to a utility or a communications company for installation and maintenance
of power, gas, electric, water or other utility and communication lines and
services requires the approval of a majority of the board of directors.
     (iii) The granting of a lease, easement,
license or other similar interest to an owner for the exclusive use of a part
of the general common elements to which the ownerÂ’s unit provides primary
access requires the approval of a majority of the board of directors. If the
approval by the board of directors includes the right of the owner to make
improvements to the general common elements to which the owner is being granted
exclusive use, ORS 100.535 applies to the general common elements to the same
extent that ORS 100.535 applies to a unit, including the right of the board
under ORS 100.535 to require an owner, at ownerÂ’s expense, to submit an opinion
of a registered architect or registered professional engineer that the proposed
improvement will not impair the structural integrity or mechanical systems of
the condominium.
     (b) Unless the declaration otherwise
provides, the consent to vacation of roadways within and adjacent to the
condominium must be approved first by at least a majority of unit owners
present voting in person or by proxy at a duly constituted meeting of the
association called for the purpose.
     (7) The instrument granting an interest or
consent pursuant to subsection (5) of this section shall be executed by the
chairperson and secretary of the association and acknowledged in the manner
provided for acknowledgment of such instruments by such officers and shall
state that such grant or consent was approved, if appropriate, by at least the
percent of owners required under subsection (6) of this section.
     (8) Unless expressly prohibited by the
declaration, any action permitted under subsections (5) and (6) of this section
regarding a general common element may be taken with respect to any limited
common element, provided that the owner of the unit to which the use of the
limited common element is reserved and the holder of any mortgage or trust deed
affecting the unit consent to the action and also execute an instrument as
provided under subsection (7) of this section.
     (9) Except as otherwise provided in the
associationÂ’s declaration or bylaws, the board of directors of the association
may modify, close, remove, eliminate or discontinue the use of a general common
element facility or improvement or portion of the common element landscaping,
regardless of whether such facility, improvement or landscaping is mentioned in
the declaration or shown on the plat provided that:
     (a) Nothing in this subsection shall be
construed as limiting the authority of the board of directors, in its
discretion, to seek approval of such modification, closure, removal,
elimination or discontinuance by the unit owners; and
     (b) Modification, closure, removal,
elimination or discontinuance other than on a temporary basis of any swimming
pool, spa or recreation or community building must be approved by at least a
majority of the unit owners voting on such matter at a meeting or by written
ballot held in accordance with the declaration, bylaws or ORS 100.425.
     (10)(a) A permit or authorization issued
by the board of directors pursuant to authority granted to the board under law,
the declaration or the bylaws, may be recorded in the deed records of the
county where the condominium is located. An instrument recorded under this
subsection shall:
     (A) Include the name of the condominium
and a reference to where the declaration and any applicable supplemental
declarations are recorded;
     (B) Identify, by the designations stated
in the declaration or applicable supplemental declaration, all affected units
and common elements;
     (C) Include such other information and
signatures as may be required by law, under the declaration or bylaws or as the
board of directors may desire; and
     (D) Be executed by the chairperson and
secretary of the association and acknowledged in the manner provided for
acknowledgment of such instruments by the officers.
     (b) The board of directors may record an
amendment, modification, termination or other instrument relating to the permit
or authorization described in this subsection. Any such instrument shall
include a reference to the location of the recorded instrument and be executed
by the chairperson and secretary of the association and acknowledged in the
manner provided for acknowledgment of such instruments.
     (11)(a) Subject to paragraph (f) of this
subsection, before initiating litigation or an administrative proceeding in
which the association and an owner have an adversarial relationship, the party
that intends to initiate litigation or an administrative proceeding shall offer
to use any dispute resolution program available within the county in which the
condominium is located that is in substantial compliance with the standards and
guidelines adopted under ORS 36.175. The written offer must be hand-delivered
or mailed by certified mail, return receipt requested, to the address,
contained in the records of the association, for the other party.
     (b) If the party receiving the offer does
not accept the offer within 10 days after receipt by written notice
hand-delivered or mailed by certified mail, return receipt requested, to the
address, contained in the records of the association, for the other party, the initiating
party may commence the litigation or the administrative proceeding. The notice
of acceptance of the offer to participate in the program must contain the name,
address and telephone number of the body administering the dispute resolution
program.
     (c) If a qualified dispute resolution
program exists within the county in which the condominium is located and an
offer to use the program is not made as required under paragraph (a) of this
subsection, litigation or an administrative proceeding may be stayed for 30
days upon a motion of the noninitiating party. If the litigation or
administrative action is stayed under this paragraph, both parties shall
participate in the dispute resolution process.
     (d) Unless a stay has been granted under
paragraph (c) of this subsection, if the dispute resolution process is not
completed within 30 days after receipt of the initial offer, the initiating
party may commence litigation or an administrative proceeding without regard to
whether the dispute resolution is completed.
     (e) Once made, the decision of the court
or administrative body arising from litigation or an administrative proceeding
may not be set aside on the grounds that an offer to use a dispute resolution
program was not made.
     (f) The requirements of this subsection do
not apply to circumstances in which irreparable harm to a party will occur due
to delay or to litigation or an administrative proceeding initiated to collect
assessments, other than assessments attributable to fines. [Formerly 94.146;
1997 c.816 §9; 1999 c.677 §47; 2001 c.756 §39; 2003 c.569 §28; 2007 c.410 §11]
     Note: Section 29, chapter 569, Oregon Laws 2003,
provides:
     Sec.
29. Unless the declaration
of a condominium recorded before July 14, 2003, expressly limits or prohibits
the authority of the association of unit owners to grant, execute, acknowledge
and deliver on behalf of the unit owners leases, easements, rights of way,
licenses and other similar interests affecting the general common elements and
consent to vacation of roadways within and adjacent to the condominium pursuant
to ORS 100.405 (6) in effect at the time the declaration was recorded, the
amendments to ORS 100.405 (6) by section 28, chapter 569, Oregon Laws 2003,
apply to the authority of the association of unit owners of a condominium
recorded before July 14, 2003, except for the limitation or prohibition on the
authority of the association under this section. [2003 c.569 §29; 2007 c.410 §12]
     100.407
Annual and special meetings of association. (1) The association of unit owners shall hold at least one meeting of
the owners each calendar year.
     (2)(a) Special meetings of the association
may be called by the chairperson of the board of directors, by a majority of
the board of directors or by the chairperson or secretary upon receipt of a
written request of a percentage of unit owners specified in the bylaws.
However, the bylaws may not require a percentage greater than 50 percent or
less than 10 percent of the unit owners for the purpose of calling a meeting.
     (b) If the bylaws do not specify a
percentage of unit owners that may request the calling of a special meeting, a
special meeting shall be called if 30 percent or more of the unit owners make
the request in writing. Notice of the special meeting shall be given as specified
in this section.
     (3) If the unit owners request a special
meeting under subsection (2) of this section and the notice is not given within
30 days after the date the written request is delivered to the chairperson or
the secretary, a unit owner who signed the request may set the time and place
of the meeting and give notice as provided in subsection (4) of this section.
     (4)(a) Not less than 10 nor more than 50
days before any meeting called under this section, the secretary or other
officer of the association specified in the bylaws shall cause the notice to be
hand delivered or mailed to the mailing address of each unit owner or to the
mailing address designated in writing by the unit owner, and to all mortgagees
that have requested the notice.
     (b) The notice shall state the time and
place of the meeting and the items on the agenda, including the general nature
of any proposed amendment to the declaration or bylaws, any budget changes or
any proposal to remove a director or officer of the association.
     (c) Mortgagees may designate a
representative to attend a meeting called under this section. [1999 c.677 §59;
2003 c.569 §30; 2007 c.409 §25]
     Note: 100.407 and 100.408 were added to and made a
part of ORS chapter 100 by legislative action but were not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     100.408
Quorum for meeting of association. (1) Unless the bylaws provide otherwise, a quorum for any meeting of
the association of unit owners consists of the number of persons who are
entitled to cast 20 percent of the voting rights and who are present in person,
by proxy or by absentee ballot, if absentee ballots are permitted by the board
of directors, at the beginning of the meeting.
     (2) If any meeting of the association of
unit owners cannot be organized because of a lack of a quorum, the unit owners
who are present, either in person or by proxy, may adjourn the meeting. The
quorum for a subsequent meeting is the greater of:
     (a) One-half of the quorum required in the
bylaws; or
     (b) The quorum required in subsection (1)
of this section. [1999 c.677 §60; 2007 c.409 §26]
     Note: See note under 100.407.
     100.409
Rules of order. Unless other
rules of order are required by the declaration or bylaws or by a resolution of
the association or its board of directors:
     (1) Meetings of the association and the
board of directors shall be conducted according to the latest edition of RobertÂ’s
Rules of Order published by the RobertÂ’s Rules Association.
     (2) A decision of the association or the
board of directors may not be challenged because the appropriate rules of order
were not used unless a person entitled to be heard was denied the right to be
heard and raised an objection at the meeting in which the right to be heard was
denied.
     (3) A decision of the association and the
board of directors is deemed valid without regard to procedural errors related
to the rules of order one year after the decision is made unless the error
appears on the face of a written instrument memorializing the decision. [2001
c.756 §58]
     Note: 100.409 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.410
Adoption of bylaws; recording; amendment; approval by commissioner; fee. (1) The declarant shall adopt on behalf of
the association of unit owners the initial bylaws that govern the
administration of the condominium. The bylaws shall be recorded simultaneously
with the declaration as an exhibit or as a separate instrument.
     (2) Unless otherwise provided in the
declaration or bylaws, amendments to the bylaws may be proposed by a majority
of the board of directors or by at least 30 percent of the owners.
     (3) Subject to subsections (4) and (5) of
this section and ORS 100.415 (1)(t), an amendment of the bylaws is not
effective unless the amendment is:
     (a) Approved by at least a majority of the
unit owners; and
     (b) Certified by the chairperson and
secretary of the association of unit owners as being adopted in accordance with
the bylaws and the provisions of this section, acknowledged in the manner
provided for acknowledgment of instruments and recorded.
     (4) In condominiums that are exclusively
residential:
     (a) The bylaws may not provide that
greater than a majority of the unit owners is required to amend the bylaws
except for amendments relating to age restrictions, pet restrictions,
limitations on the number of persons who may occupy units and limitations on
the rental or leasing of units.
     (b) An amendment relating to a matter
specified in paragraph (a) of this subsection is not effective unless approved
by at least 75 percent of the owners or a greater percentage specified in the
bylaws.
     (5) The bylaws may not be amended to limit
or diminish any special declarant right without the consent of the declarant.
However, the declarant may waive the declarantÂ’s right of consent.
     (6)(a) For five years after the recording
of the initial bylaws, before any amended bylaw may be recorded, the amended
bylaw must be approved by the Real Estate Commissioner. The commissioner shall
approve such amendment if the requirements of ORS 100.415 and this section have
been satisfied.
     (b) The approval by the commissioner under
paragraph (a) of this subsection is not required for bylaws restated under
subsection (10) of this section unless the bylaws are restated during the
five-year period after the recording of the initial bylaws.
     (c) If the amended bylaw approved by the
commissioner under this subsection is not recorded as required in subsection
(3) of this section within two years from the date of approval by the
commissioner, the approval automatically expires and the amended bylaw must be
resubmitted for approval as provided in this section. The commissionerÂ’s
approval shall set forth the date on which the approval expires.
     (7) Before the commissioner approves
amended bylaws or restated bylaws under this section, the person submitting the
amended bylaws or restated bylaws shall pay to the commissioner the fee
provided by ORS 100.670.
     (8) Notwithstanding a provision in the
bylaws, including bylaws adopted prior to July 14, 2003, that requires an
amendment to be executed, or executed and acknowledged, by all owners approving
the amendment, amendments to the bylaws under this section become effective
after approval by the owners if executed and certified on behalf of the
association by the chairperson and secretary in accordance with subsection
(3)(b) of this section.
     (9) An amendment to the bylaws must be
conclusively presumed to have been regularly adopted in compliance with all
applicable procedures relating to the amendment unless an action is brought
within one year after the effective date of the amendment or the face of the
amendment indicates that the amendment received the approval of fewer votes
than required for the approval. Nothing in this subsection prevents the further
amendment of an amended bylaw.
     (10)(a) The board of directors, by
resolution and without the further approval of unit owners, may cause restated
bylaws to be prepared and recorded to codify individual amendments that have
been adopted in accordance with this section.
     (b) Bylaws restated under this subsection
must:
     (A) Include all previously adopted
amendments that are in effect, state that the amendments were approved by the
commissioner as required under this section and state that no other changes
were made except, if applicable, to correct scrivenersÂ’ errors or to conform
format and style;
     (B) Include a statement that the board of
directors has adopted a resolution in accordance with paragraph (a) of this
subsection and is causing the bylaws to be restated and recorded under this
subsection;
     (C) Include a reference to the recording
index numbers and date of recording of the initial bylaws and all previously
recorded amendments that are in effect and are being codified;
     (D) Include a certification by the
chairperson and secretary of the association that the restated bylaws include
all previously adopted amendments that are in effect, that amendments were
approved by the commissioner if required under this section and that no other
changes were made except, if applicable, to correct scrivenersÂ’ errors or to
conform format and style;
     (E) Be executed and acknowledged by the
chairperson and secretary of the association and recorded in the deed records
of each county in which the condominium is located; and
     (F) If required under subsection (6) of
this section, be approved by the commissioner.
     (c) The board of directors shall cause a
copy of the recorded restated bylaws, including the recording information, to
be filed with the commissioner. [Formerly 94.152; 2001 c.756 §40; 2003 c.569 §31;
2005 c.22 §76; 2007 c.409 §34; 2007 c.410 §13]
     100.412
Annual budget; distribution of budget summary to owners. (1) The board of directors at least annually
shall adopt a budget for the association of unit owners.
     (2) The budget shall include moneys
required to be allocated to the reserve account under ORS 100.175.
     (3) Within 30 days after adopting the
annual budget for the association, the board of directors shall provide a
summary of the budget to all owners.
     (4) If the board of directors fails to
adopt an annual budget, the last adopted budget shall continue in effect. [1999
c.677 §58; 2007 c.409 §26a]
     Note: 100.412 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.415
Contents of bylaws. (1) The
bylaws shall include a reference to the declaration to which the bylaws relate
and shall provide for:
     (a) The organization of the association of
unit owners in accordance with ORS 100.405, when the initial meeting shall be
held and the method of calling that meeting.
     (b) If required under ORS 100.205, the
formation of a transitional committee in accordance with such section.
     (c) The turnover meeting required under
ORS 100.210, including when the meeting shall be called, the method of calling
the meeting, the right of a unit owner under ORS 100.210 (3) to call the
meeting and a statement of the purpose of the meeting.
     (d)(A) The method of calling the annual
meeting and all other meetings of the unit owners in accordance with ORS 100.407;
and
     (B) The percentage of owners that
constitutes a quorum.
     (e)(A) The election from among the unit
owners of a board of directors and the number of persons constituting the
board;
     (B) The terms of office of directors;
     (C) The powers and duties of the board;
     (D) The compensation, if any, of the
directors;
     (E) The method of removal from office of
directors; and
     (F) The method of filling vacancies on the
board.
     (f) The method of calling meetings of the
board of directors in accordance with ORS 100.420 and a statement that all
meetings of the board of directors of the association of unit owners shall be
open to unit owners.
     (g) The election of a chairperson, a
secretary, a treasurer and any other officers of the association.
     (h) The preparation and adoption of a
budget in accordance with ORS 100.412.
     (i)(A) The maintenance, repair and
replacement of the common elements and association property;
     (B) Payment for the expense of
maintenance, repair and replacement of common elements and association property
and other expenses of the condominium in accordance with ORS 100.530; and
     (C) The method of approving payment
vouchers.
     (j) The employment of personnel necessary
for the maintenance and repair of the common elements.
     (k) The manner of collecting assessments
from the unit owners.
     (L) Insurance coverage in accordance with
ORS 100.435 and the responsibility for payment of the amount of the deductible
in an association insurance policy.
     (m) The preparation and distribution of
the annual financial statement in accordance with ORS 100.480.
     (n) The reserve account and the
preparation, review and update of the reserve study and the maintenance plan
required under ORS 100.175.
     (o) The filing of an Annual Report and any
amendment with the Real Estate Agency in accordance with ORS 100.250.
     (p) The method of adopting and of amending
administrative rules and regulations governing the details of the operation of
the condominium and use of the common elements.
     (q) Restrictions on and requirements
respecting the enjoyment and maintenance of the units and the common elements
as are designed to prevent unreasonable interference with the use of their
respective units and of the common elements by the several unit owners.
     (r) Any restrictions on use or occupancy
of units. Any such restrictions created by documents other than the bylaws may
be incorporated by reference in the bylaws to the official records of the
county in which the property is located.
     (s) The method of amending the bylaws in
accordance with ORS 100.410.
     (t) Any other details regarding the
property that the declarant considers desirable. However, if a provision
required to be in the declaration under ORS 100.105 is included in the bylaws,
the voting requirements for amending the declaration shall also govern the
amendment of the provision in the bylaws.
     (u) In the event additional units are
proposed to be annexed or created pursuant to ORS 100.125 or 100.150, the
method of apportioning common expenses in the event new units are added during the
course of the fiscal year.
     (2) The bylaws may provide that the
responsibility for payment of the amount of the deductible may be prescribed by
resolution adopted by the board of directors. [Formerly 94.158; 1995 c.31 §12;
1999 c.677 §48; 2001 c.756 §41; 2007 c.409 §30]
     100.417
Board of directors of association; powers and duties. (1) The board of directors of an association
of unit owners may act on behalf of the association except as limited by the
declaration or bylaws. In the performance of their duties, officers and members
of the board of directors shall be governed by this section and the applicable
provisions of ORS 65.357, 65.361, 65.367, 65.369 and 65.377 whether or not the
association is incorporated under ORS chapter 65.
     (2) Unless otherwise provided in the
bylaws, the board of directors of an association may fill vacancies in its
membership for the unexpired portion of any term.
     (3) At least annually, the board of
directors of an association shall review the insurance coverage of the association.
     (4) The board of directors of the
association annually shall cause to be filed the necessary income tax returns
for the association.
     (5) The board of directors of the
association may record a statement of association information as provided in ORS
94.667.
     (6) The board of directors, in the name of
the association, shall maintain a current mailing address.
     (7) The board of directors shall cause to
be maintained and kept current the information required to enable the
association to comply with ORS 100.480 (10).
     (8) Unless otherwise provided in the
declaration or bylaws:
     (a) The unit owners may remove any member
of the board of directors of the association, other than members appointed by
the declarant or persons who are ex officio directors, with or without cause,
by a majority vote of all owners present and entitled to vote at any meeting of
the owners at which a quorum is present.
     (b) Removal of a member of the board of
directors is not effective unless the matter of removal is an item on the agenda
and stated in the notice for the meeting required under ORS 100.407. [1999
c.677 §63; 2001 c.756 §42; 2003 c.569 §32]
     Note: 100.417 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series therein.
See Preface to Oregon Revised Statutes for further explanation.
     100.418
Receivership for failure of association to fill vacancies on board of
directors. (1) Subject to
subsection (2) of this section, if an association of unit owners fails to fill
vacancies on the board of directors sufficient to constitute a quorum in
accordance with the bylaws, a unit owner or a first mortgagee of a unit may
request the circuit court of the county in which the condominium is located to
appoint a receiver under ORCP 80 to manage the affairs of the association.
     (2) At least 45 days before a unit owner
or first mortgagee of a unit requests the circuit court to appoint a receiver
under subsection (1) of this section, the unit owner or first mortgagee shall
mail, by certified or registered mail, a notice to the association and shall
post a copy of the notice at a conspicuous place or places on the property or
provide notice by a method otherwise reasonably calculated to inform unit
owners of the proposed action.
     (3) The notice shall be signed by the unit
owner or first mortgagee of the unit and include:
     (a) A description of the intended action.
     (b) A statement that the intended action
is pursuant to this section.
     (c) The date, not less than 30 days after
mailing of the notice, by which the association must fill vacancies on the
board sufficient to constitute a quorum.
     (d) A statement that if the association
fails to fill vacancies on the board by the specified date, the unit owner or
first mortgagee may file a petition with the court under subsection (1) of this
section.
     (e) A statement that if a receiver is
appointed, all expenses of the receivership will be common expenses of the
association as provided in subsection (4) of this section.
     (4) If a receiver is appointed, the salary
of the receiver, court costs, attorney fees and all other expenses of the
receivership shall be common expenses of the association.
     (5) A receiver appointed under this
section has all of the powers and duties of a duly constituted board of directors
and shall serve until a sufficient number of vacancies on the board are filled
to constitute a quorum.
     (6) If at a turnover meeting held in
accordance with ORS 100.210 the unit owners fail to elect the number of
directors sufficient to constitute a quorum of the board of directors, in
addition to the notice requirements specified in subsections (2) and (3) of
this section, a unit owner shall give the notice to all other unit owners as
provided in the bylaws.
     (7) Notwithstanding subsections (2) and
(3) of this section, in the case of an emergency, the court may waive the
notice requirements of subsections (2) and (3) of this section. [2007 c.409 §19]
     Note: 100.418, 100.419 and 100.423 were added to
and made a part of ORS chapter 100 by legislative action but were not added to
any smaller series therein. See Preface to Oregon Revised Statutes for further
explanation.
     100.419
Assent of director to board action. (1) A director of an association of unit owners who is present at a
meeting of the board of directors at which action is taken on any association
matter is presumed to have assented to the action unless the director votes
against the action or abstains from voting on the action because the director
claims a conflict of interest.
     (2) When action is taken on any matter at
a meeting of the board of directors, the vote or abstention of each director
present must be recorded in the minutes of the meeting.
     (3) Directors may not vote by proxy or by
secret ballot at meetings of the board of directors.
     (4) Notwithstanding subsection (3) of this
section, officers may be elected by secret ballot. [2007 c.409 §22]
     Note: See note under 100.418.
     100.420
Board meetings; executive sessions. (1)(a) All meetings of the board of directors of the association of
unit owners shall be open to unit owners except that, in the discretion of the
board, the following matters may be considered in executive session:
     (A) Consultation with legal counsel
concerning the rights and duties of the association regarding existing or
potential litigation, or criminal matters;
     (B) Personnel matters, including salary
negotiations and employee discipline;
     (C) Negotiation of contracts with third
parties; and
     (D) Collection of unpaid assessments.
     (b) Except in the case of an emergency,
the board of directors of an association shall vote in an open meeting whether
to meet in executive session. If the board of directors votes to meet in
executive session, the presiding officer of the board of directors shall state
the general nature of the action to be considered, as precisely as possible,
when and under what circumstances the deliberations can be disclosed to owners.
The statement, motion or decision to meet in executive session must be included
in the minutes of the meeting.
     (c) A contract or an action considered in
executive session does not become effective unless the board of directors,
following the executive session, reconvenes in open meeting and votes on the
contract or action, which must be reasonably identified in the open meeting and
included in the minutes.
     (d) The meeting and notice requirements in
this section may not be circumvented by chance or social meetings or by any
other means.
     (2) Except as provided in subsection (3)
of this section, board of directorsÂ’ meetings may be conducted by telephonic
communication or by the use of a means of communication that allows all members
of the board of directors participating to hear each other simultaneously or
otherwise to be able to communicate during the meeting. A member of the board
of directors participating in a meeting by this means is deemed to be present
in person at the meeting.
     (3) In condominiums where the majority of
the units are the principal residences of the occupants, meetings of the board
of directors shall comply with the following:
     (a) For other than emergency meetings,
notice of board of directorsÂ’ meetings shall be posted at a place or places on
the property at least three days prior to the meeting or notice shall be
provided by a method otherwise reasonably calculated to inform unit owners of
such meetings.
     (b) Only emergency meetings of the board
of directors may be conducted by telephonic communication or in a manner
described in subsection (2) of this section.
     (4) Subsection (3)(a) of this section
first applies to property submitted to the provisions of this chapter prior to
October 3, 1979, upon receipt by the board of directors of the association of
unit owners of a written request from at least one unit owner that notice of
board of directors meetings be given in accordance with subsection (3)(a) of
this section.
     (5) As used in this section, “meeting”
means a convening of a quorum of members of the board of directors where
matters relating to association business are discussed, except a convening of a
quorum of members of the board of directors for the purpose of participating in
litigation, mediation or arbitration proceedings. [Formerly 94.164; 1999 c.677 §49;
2001 c.756 §43; 2003 c.569 §33]
     100.423
Electronic notice to owner or director. (1) Subject to subsection (2) of this section and notwithstanding any
requirement under the declaration or bylaws or this chapter, in the discretion
of the board of directors of the association of unit owners, any notice,
information or other written material required to be given to a unit owner or
director under the declaration or bylaws or this chapter, may be given by
electronic mail, facsimile or other form of electronic communication acceptable
to the board of directors.
     (2) Notwithstanding subsection (1) of this
section, electronic mail, facsimile or other form of electronic communication
may not be used to give notice of:
     (a) Failure to pay an assessment;
     (b) Foreclosure of an association lien
under ORS 100.450;
     (c) An action the association may take
against a unit owner; or
     (d) An offer to use the dispute resolution
program under ORS 100.405.
     (3) A unit owner or director may decline
to receive notice by electronic mail, facsimile or other form of electronic
communication and may direct the board of directors to provide notice in the
manner required under the declaration or bylaws or this chapter. [2007 c.409 §20]
     Note: See note under 100.418.
     100.425
Use of written ballot for approving or rejecting matters subject to meeting of
unit owners; procedures; exceptions. (1) Unless prohibited or limited by the declaration, articles of
incorporation or bylaws, any action that may be taken at any annual, regular or
special meeting of the association of unit owners may be taken without a
meeting if the association delivers a written ballot to every association
member that is entitled to vote on the matter. Action by written ballot may not
substitute for the following meetings:
     (a) The turnover meeting required under
ORS 100.210.
     (b) The annual meeting of an association
if more than a majority of the units are the principal residences of the
occupants.
     (c) A meeting of the association if the
agenda includes a proposal to remove a director from the board of directors.
     (d) A special meeting of the association
called at the request of unit owners under ORS 100.407 (2).
     (2)(a) A written ballot shall set forth
each proposed action and provide an opportunity to vote for or against each
proposed action.
     (b) The board of directors must provide
owners with at least 10 daysÂ’ notice before written ballots are mailed or
otherwise delivered. If, at least three days before written ballots are
scheduled to be mailed or otherwise distributed, at least 10 percent of the
owners petition the board of directors requesting secrecy procedures, subject
to paragraph (d) of this subsection, a written ballot must be accompanied by:
     (A) A secrecy envelope;
     (B) A return identification envelope to be
signed by the owner; and
     (C) Instructions for marking and returning
the ballot.
     (c) The notice required under paragraph
(b) of this subsection shall state:
     (A) The general subject matter of the vote
by written ballot;
     (B) The right of owners to request secrecy
procedures specified in paragraph (b) of this subsection;
     (C) The date after which ballots may be
distributed;
     (D) The date and time by which any
petition requesting secrecy procedures must be received by the board; and
     (E) The address where any petition must be
delivered.
     (d) The requirements of paragraph (b)(A)
and (B) of this subsection do not apply to a written ballot of a unit owner if
the consent or approval of that unit owner is required by the declaration or
bylaws or this chapter.
     (3) Matters that may be voted on by
written ballot shall be deemed approved or rejected as follows:
     (a) If approval of a proposed action
otherwise would require a meeting at which a certain quorum must be present and
at which a certain percentage of total votes cast is required to authorize the
action, the proposal shall be deemed to be approved when the date for return of
ballots has passed, a quorum of unit owners has voted and the required
percentage of approving votes has been received. Otherwise, the proposal shall
be deemed to be rejected; and
     (b) If approval of a proposed action otherwise
would require a meeting at which a specified percentage of unit owners must
authorize the action, the proposal shall be deemed to be approved when the
percentage of total votes cast in favor of the proposal equals or exceeds the
required percentage. The proposal shall be deemed to be rejected when the
number of votes cast in opposition renders approval impossible or when both the
date for return of ballots has passed and the required percentage has not been
met.
     (4) All solicitations for votes by written
ballot shall state the following:
     (a) If approval of a proposal by written
ballot requires that the total number of votes cast equal or exceed a certain
quorum requirement, the number of responses needed to meet the quorum
requirement;
     (b) If approval of a proposal by written
ballot requires that a certain percentage of total votes cast approve the
proposal, the required percentage of total votes needed for approval; and
     (c) The period during which the
association will accept written ballots for counting in accordance with
subsection (5) of this section.
     (5)(a) The association shall accept
written ballots for counting during the period specified in the solicitation
under subsection (4) of this section. Except as provided in paragraph (b) of
this subsection, the period shall end on the earliest of the following dates:
     (A) If approval of a proposed action by
written ballot requires that a certain percentage of the unit owners approve
the proposal, the date on which the association has received a sufficient
number of approving ballots;
     (B) If approval of a proposed action by
written ballot requires that a certain percentage of the unit owners approve
the proposal, the date on which the association has received a sufficient
number of disapproving ballots to render approval impossible; or
     (C) In all cases, a specified date certain
on which all ballots must be returned to be counted.
     (b) If the vote is by secrecy procedure
under subsection (2)(b) of this section, the period shall end on the date specified
in the solicitation or any extension under paragraph (c) of this subsection.
     (c) Except as otherwise provided in the
declaration, articles of incorporation or bylaws, in the discretion of the
board of directors, if a date certain is specified in the solicitation under
subsection (4) of this section, the period may be extended by written notice of
the extension given to all unit owners before the end of the specified date
certain.
     (6) Except as otherwise provided in the
declaration, articles of incorporation or bylaws, unless the vote is by secrecy
procedure under subsection (2)(b) of this section, a written ballot may be
revoked before the final return date of the ballots.
     (7) Unless otherwise prohibited by the
declaration, articles of incorporation or bylaws, the votes may be counted from
time to time before the final return date of the ballots to determine whether
the proposal has passed or failed by the votes already cast on the date the
ballots are counted.
     (8) Notwithstanding subsection (7) of this
section, ballots that are returned in secrecy envelopes may not be examined or
counted before the date certain specified in the solicitation or any extension
under subsection (5)(c) of this section. [1997 c.816 §17; 2001 c.756 §44; 2003
c.569 §34; 2007 c.409 §27]
     Note: 100.425 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.427
Methods of voting. (1) The
voting rights or consent of a unit owner may be cast or given:
     (a) In person at a meeting of the
association of unit owners.
     (b) In the discretion of the board of
directors, by absentee ballot in accordance with subsection (3) of this
section.
     (c) Unless the declaration or bylaws or
this chapter provide otherwise, pursuant to a proxy in accordance with
subsection (2) of this section.
     (d) By written ballot in lieu of a meeting
under ORS 100.425.
     (e) By any other method specified by the
declaration or bylaws or this chapter.
     (2)(a) A proxy:
     (A) Must be dated and signed by the unit
owner;
     (B) Is not valid if it is undated or
purports to be revocable without notice; and
     (C) Terminates one year after its date
unless the proxy specifies a shorter term.
     (b) The board of directors may not require
that a proxy be on a form prescribed by the board.
     (c) A unit owner may not revoke a proxy
given pursuant to this section except by actual notice of revocation to the
person presiding over a meeting of the association of unit owners or to the
board of directors if a vote is being conducted by written ballot in lieu of a
meeting pursuant to ORS 100.425.
     (d) A copy of a proxy in compliance with
paragraph (a) of this subsection provided to the association by facsimile,
electronic mail or other means of electronic communication utilized by the
board of directors is valid.
     (3)(a) An absentee ballot shall set forth
each proposed action and provide an opportunity to vote for or against each
proposed action.
     (b) All solicitations for votes by
absentee ballot shall include:
     (A) Instructions for delivery of the
completed absentee ballot, including the delivery location; and
     (B) Instructions about whether the ballot
may be canceled if the ballot has been delivered according to the instructions.
     (c) An absentee ballot shall be counted as
a unit owner present for the purpose of establishing a quorum.
     (d) Even if an absentee ballot has been
delivered to a unit owner, the unit owner may vote in person at a meeting if
the unit owner has:
     (A) Returned the absentee ballot; and
     (B) Canceled the absentee ballot, if
cancellation is permitted in the instructions given under paragraph (b) of this
subsection. [1999 c.677 §61; 2003 c.569 §35; 2007 c.409 §28]
     Note: 100.427 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.428
Electronic ballot. (1) As
used in this section, “electronic ballot” means a ballot given by:
     (a) Electronic mail;
     (b) Facsimile transmission;
     (c) Posting on a website; or
     (d) Other means of electronic
communication acceptable to the board of directors.
     (2) Unless the declaration or bylaws
prohibit or provide for other methods of electronic ballots, the board of
directors of an association of unit owners, in the boardÂ’s discretion, may
provide that a vote, approval or consent of a unit owner may be given by
electronic ballot.
     (3) An electronic ballot shall comply with
the requirements of this section and the declaration or bylaws or this chapter.
     (4) An electronic ballot may be
accompanied by or contained in an electronic notice in accordance with ORS
100.423.
     (5) If an electronic ballot is posted on a
website, a notice of the posting shall be sent to each unit owner and shall
contain instructions on obtaining access to the posting on the website.
     (6) A vote made by electronic ballot is
effective when it is electronically transmitted to an address, location or
system designated by the board of directors for that purpose.
     (7) Unless otherwise provided in the
declaration or bylaws or rules adopted by the board of directors, a vote by
electronic ballot may not be revoked.
     (8) The board of directors may not elect
to use electronic ballots unless there are procedures to ensure:
     (a) Compliance with ORS 100.425 if the
vote conducted by written ballot under ORS 100.425 uses the procedures
specified in ORS 100.425 (2)(b); and
     (b) That the electronic ballot is secret,
if the declaration or bylaws or rules adopted by the board require that
electronic ballots be secret. [2007 c.409 §21]
     Note: 100.428 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     100.430
Unit deeds; contents. The
deed of a unit shall contain:
     (1) The name of the property, and the
recording index numbers and date of recording of the declaration and in the
case of a staged or flexible condominium, the applicable supplemental
declaration or declaration amendment.
     (2) The unit designation of the unit.
     (3) Any further details the grantor and
grantee may consider desirable. [Formerly 94.171]
     100.435
Insurance for individual units and common elements. (1) If the bylaws provide that the
association of unit owners has the sole authority to decide whether to repair
or reconstruct a unit that has suffered damage or that a unit must be repaired
or reconstructed, the board of directors shall obtain and maintain at all times
and shall pay for out of the common expense funds, the following insurance
covering both the common elements and individual units:
     (a) Property insurance including, but not
limited to, fire, extended coverage, vandalism and malicious mischief; and
     (b) Insurance covering the legal liability
of the association of unit owners, the unit owners individually and the manager
including, but not limited to, the board of directors, the public and the unit
owners and their invitees or tenants, incident to ownership, supervision,
control or use of the property. There may be excluded from the policy required
under this paragraph, coverage of a unit owner, other than coverage as a member
of the association of unit owners or board of directors, for liability arising
out of acts or omissions of that unit owner and liability incident to the
ownership or use of the part of the property as to which that unit owner has
the exclusive use or occupancy. Liability insurance required under this
paragraph shall be issued on a comprehensive liability basis and shall provide
a cross liability indorsement providing that the rights of a named insured
under the policy do not prejudice any action against another named insured.
     (2) If the bylaws require the individual
unit owners to obtain insurance for their units, the bylaws also shall contain
a provision requiring the board of directors to obtain the following insurance
covering the common elements:
     (a) Property insurance including, but not
limited to, fire, extended coverage, vandalism and malicious mischief; and
     (b) Insurance covering the legal liability
of the association of unit owners and the manager including, but not limited
to, the board of directors, to the public or the unit owners and their invitees
or tenants, incident to supervision, control or use of the property.
     (3) The board of directors shall obtain,
if reasonably available, terms in insurance policies under this section that
provide a waiver of subrogation by the insurer as to any claims against the
board of directors of the association.
     (4) Notwithstanding a provision in the
declaration or bylaws of a condominium, including a condominium created before
September 27, 2007, that imposes a maximum deductible amount of $10,000 or less
in an association insurance policy, if the board of directors determines that
it is in the best interest of the association of unit owners and of the unit
owners, as provided in subsection (5) of this section, the board may adopt a
resolution authorizing the association to obtain and maintain an insurance
policy with a deductible amount exceeding the specified maximum, but not in
excess of the greater of:
     (a) The maximum deductible acceptable to
the Federal National Mortgage Association; or
     (b) $10,000.
     (5) In making the determination under
subsection (4) of this section, the board of directors shall consider such
factors as the availability and cost of insurance and the loss experience of
the association.
     (6) If the declaration or bylaws of a
condominium created before September 27, 2007, do not assign the responsibility
for payment of the amount of the deductible in an association insurance policy,
the board of directors may adopt a resolution that assigns the responsibility
for payment of the amount of the deductible. The resolution must include, but
need not be limited to:
     (a) The circumstances under which the
deductible will be charged against:
     (A) A unit owner or the unit owners
affected by a loss; or
     (B) All unit owners;
     (b) The allocation of the deductible
charged under paragraph (a) of this subsection; and
     (c) If a unit owner and the association
have duplicate insurance coverage, the insurance policy that is primary, unless
otherwise provided in the declaration or bylaws.
     (7) If the board of directors adopts a
resolution described in subsection (6) of this section, the resolution may
require that a unit owner, in addition to any other insurance required by the
declaration or bylaws, obtain and maintain:
     (a) An insurance policy that insures the
unit ownerÂ’s unit and appurtenant limited common elements for not less than the
amount of the deductible in the associationÂ’s insurance policy for which the
unit owner may be responsible and that insures the unit ownerÂ’s personal
property for any loss or damage; and
     (b) Comprehensive liability insurance that
includes, but is not limited to, coverage for negligent acts of unit owners and
tenants, guests of unit owners and tenants and occupants of other units for
damage to the general and limited common elements, to other units and to the
personal property of other persons that is located in other units or the common
elements.
     (8) Unless otherwise provided in the
declaration or bylaws, the board of directors may adopt a resolution that:
     (a) Prescribes a procedure for processing
insurance claims. The procedure may require that all claims against the
associationÂ’s insurance policy be processed through and coordinated by the
board of directors or the managing agent, if authorized by the board.
     (b) Assigns the responsibility for payment
of charges for handling claims, including any charges by a managing agent.
     (9) Not later than 10 days after adoption
of a resolution under subsection (4), (6) or (8) of this section, the board of
directors shall ensure that a copy of the resolution and a notice described in
subsection (10) of this section are:
     (a) Delivered to each unit owner; or
     (b) Mailed to the mailing address of each
unit owner or to the mailing address designated in writing by the unit owner.
     (10) The notice required under subsection
(9) of this section shall:
     (a) Advise the unit owner to contact the
unit ownerÂ’s insurance agent to determine the effect of the resolution on the
unit ownerÂ’s individual insurance coverage; and
     (b) Be in a form and style reasonably
calculated to inform the unit owner of the importance of the notice.
     (11) Failure to provide a copy of a
resolution or a notice required under this section does not affect the
responsibility of a unit owner to comply with a resolution adopted under this section.
[Formerly 94.177; 1999 c.677 §50; 2007 c.409 §31]
     100.440
Liens against property; removal from lien; effect of part payment. (1) Subsequent to recording a declaration
and while the property remains subject to this chapter, no lien shall arise or
be effective against the property. During such period liens or encumbrances
shall arise or be created only against each unit and the undivided interest in
the common elements appertaining thereto, in the same manner and under the same
conditions as liens or encumbrances may arise or be created upon or against any
other separate parcel of real property subject to individual ownership.
     (2) No labor performed or materials
furnished with the consent or at the request of a unit owner, the agent,
contractor or subcontractor of the unit owner, shall be the basis for the
filing of a mechanicÂ’s or materialmanÂ’s lien against the unit of any other unit
owner not consenting to or requesting the labor to be performed or the
materials to be furnished, except that consent shall be considered given by the
owner of any unit in the case of emergency repairs thereto performed or
furnished with the consent or at the request of the board of directors.
     (3) If a lien becomes effective against
two or more units, the owner of each unit subject to such a lien shall have the
right to have the unit of the owner released from the lien by payment of the
amount of the lien attributable to the unit. The amount of the lien
attributable to a unit and the payment required to satisfy such a lien, in the
absence of agreement, shall be determined by application of the allocation
established in the declaration. Such partial payment, satisfaction or discharge
shall not prevent the lienor from proceeding to enforce the rights of the
lienor against any unit and the undivided interest in the common elements
appertaining thereto not so released by payment, satisfaction or discharge. [Formerly
94.185]
     100.445
Independent default clauses; option to purchase fee simple interest. Where a leasehold interest is submitted to
the provisions of this chapter, the master lease shall:
     (1) Contain independent default clauses,
the effect of which shall be that a unit owner cannot be evicted because the
board of directors of the association of unit owners has defaulted so long as
the unit owner has paid the pro rata share of the unit owner of the funds
necessary to correct the default or because another unit owner has defaulted.
     (2) Contain the procedure for the
submission of the fee simple interest in the property to the condominium if the
lease includes an option for the unit owners to purchase the fee simple
interest.
     (3) Be recorded in the office of the
recording officer before the declaration for the property is recorded in
accordance with ORS 100.100. [Formerly 94.190; 2001 c.756 §45]
     100.450
Association lien against individual unit; recording notice of claim; foreclosure;
priority of lien. (1)
Whenever an association of unit owners levies any assessment against a unit,
the association of unit owners shall have a lien upon the individual unit and
the undivided interest in the common elements appertaining to such unit for any
unpaid assessments. The lien includes interest, late charges, attorney fees,
costs or other amounts levied under the declaration or bylaws. The lien is
prior to a homestead exemption and all other liens or encumbrances upon the
unit except:
     (a) Tax and assessment liens; and
     (b) A first mortgage or trust deed of
record unless:
     (A) The condominium consists of fewer than
seven units, all of which are to be used for nonresidential purposes;
     (B) The declaration provides that the lien
of any mortgage or trust deed of record affecting the property shall be
subordinate to the lien of the association provided under subsection (1) of
this section; and
     (C) The holder of any mortgage or trust
deed of record affecting the property when the declaration is recorded executes
a separate subordination of the holderÂ’s interest to the declaration which is
attached as an exhibit and which states that the holder understands that the
declaration subordinates the holderÂ’s lien to the assessment lien of the
association provided under subsection (1) of this section.
     (2) Recording of the declaration
constitutes record notice and perfection of the lien for assessments. No
further recording of a claim of lien for assessments or notice of a claim of
lien under this section is required to perfect the associationÂ’s lien. The
association shall record a notice of claim of lien for assessments under this
section in the deed records of the county in which the unit is located before
any suit to foreclose may proceed under subsection (4) of this section. The
notice shall contain:
     (a) A true statement of the amount due for
the unpaid assessments after deducting all just credits and offsets;
     (b) The name of the owner of the unit, or
reputed owner, if known;
     (c) The name of the condominium and the
designation of the unit as stated in the declaration or applicable supplemental
declaration; and
     (d) A statement that if the owner of the
unit thereafter fails to pay any assessments when due, as long as the original
or any subsequent unpaid assessment remains unpaid, the unpaid amount of
assessments automatically continue to accumulate with interest without the
necessity of further recording.
     (3) The notice shall be verified by the
oath of some person having knowledge of the facts and shall be recorded by the
county recording officer. The record shall be indexed as other liens are
required by law to be indexed.
     (4)(a) The proceedings to foreclose liens
created by this section shall conform as nearly as possible to the proceedings
to foreclose liens created by ORS 87.010 except, notwithstanding ORS 87.055, a
lien may be continued in force for a period of time not to exceed six years from
the date the assessment is due. For the purpose of determining the date the
assessment is due in those cases when subsequent unpaid assessments have
accumulated under a notice recorded as provided in subsection (2) of this
section, the assessment and claim regarding each unpaid assessment shall be
deemed to have been levied at the time the unpaid assessment became due.
     (b) The lien may be enforced by the board
of directors acting on behalf of the association of unit owners.
     (c) An action to recover a money judgment
for unpaid assessments may be maintained without foreclosing or waiving the
lien securing the claim for unpaid assessments.
     (d) An action to foreclose a lien under
this section or recover a money judgment for unpaid assessments may not be maintained
unless the Condominium Information Report and the Annual Report described in
ORS 100.250 are designated current as provided in ORS 100.255.
     (5) Unless the declaration or bylaws
provides otherwise, fees, late charges, fines and interest imposed pursuant to
ORS 100.405 (4)(j), (k), (L) and (m) are enforceable as assessments under this
section.
     (6) With respect to condominium units also
constituting timeshare property as defined by ORS 94.803, liens created by this
section shall be assessed to the timeshare owners in the timeshare property
according to the method for determining each ownerÂ’s liability for common
expenses under the timeshare instrument and shall be enforced individually
against each timeshare owner in the condominium unit.
     (7) Notwithstanding the priority
established for a lien for unpaid assessments and interest under subsection (1)
of this section, the lien shall also be prior to the lien of a first mortgage
or trust deed of record for the unit and the undivided interest in the common
elements, if:
     (a) The association of unit owners for the
condominium in which the unit is located has given the lender under the
mortgage or trust deed 90 days prior written notice that the owner of the unit
is in default in payment of an assessment. The notice shall contain:
     (A) Name of borrower;
     (B) Recording date of trust deed or
mortgage;
     (C) Recording information;
     (D) Name of condominium, unit owner and
unit designation stated in the declaration or applicable supplemental
declaration; and
     (E) Amount of unpaid assessment.
     (b) The notice under paragraph (a) of this
subsection shall set forth the following in 10-point type:
______________________________________________________________________________
     NOTICE: The lien of the association may become
prior to that of the lender pursuant to ORS 100.450.
______________________________________________________________________________
     (c) The lender has not initiated judicial
action to foreclose the mortgage or requested issuance of a trusteeÂ’s notice of
sale under the trust deed or accepted a deed in lieu of foreclosure in the
circumstances described in ORS 100.465 prior to the expiration of 90 days
following the notice by the unit ownersÂ’ association.
     (d) The unit owners’ association has
provided the lender, upon request, with copies of any liens filed on the unit,
a statement of the assessments and interest remaining unpaid on the unit and
other documents which the lender may reasonably request.
     (e) The borrower is in default under the
terms of the mortgage or trust deed as to principal and interest.
     (f) A copy of the notice described in
paragraph (a) of this subsection, together with an affidavit of notice by a
person having knowledge of the facts, has been recorded in the manner
prescribed in subsection (3) of this section. The affidavit shall recite the
date and the person to whom the notice was given. [Formerly 94.195; 1995 c.31 §13;
1997 c.816 §10; 1999 c.59 §18; 1999 c.677 §71; 2001 c.104 §31; 2003 c.569 §36]
     100.460
Foreclosure against unit; receiver for unit; power of board of directors to bid
at foreclosure sale. In any
foreclosure suit against a unit, the unit owner shall be required to pay a
reasonable rental for the unit, if so provided in the bylaws, and the plaintiff
in such foreclosure shall be entitled to the appointment of a receiver to
collect the rent. The board of directors, acting on behalf of the unit owners,
shall have power, unless prohibited by the declaration, to bid in the unit at
the foreclosure sale, and to acquire and hold, lease, mortgage and convey the
same. [Formerly 94.202]
     100.465
Circumstances in which deed in lieu of foreclosure extinguishes lien. Unless the declarations or bylaws otherwise
provide, a deed in lieu of foreclosure accepted by the holder of a first
mortgage or the beneficiary of a first deed of trust in respect to a
condominium unit shall have the effect of extinguishing a lien of the
association securing unpaid assessments through the date of recording of the
deed in lieu of foreclosure in the following circumstances:
     (1) Written notice has been given to the
association, addressed to the individual authorized to accept service of
process sent by first class mail, return receipt requested, notifying the
association of the mortgagee or beneficiaryÂ’s intent to accept a deed in lieu
of foreclosure and stating that the lien of the association may be extinguished
in the circumstances specified in this section; and
     (2) The deed in lieu of foreclosure is
recorded not later than 30 days after the date the notice is mailed to the
association. [1989 c.595 §36; 2003 c.569 §36a]
     Note: 100.465 and 100.470 were added to and made a
part of ORS 100.005 to 100.910 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for further
explanation.
     100.470
Lien foreclosure; other legal action by declarant, association or owner;
attorney fees. In any suit
or action brought by an association of unit owners to foreclose its lien or to
collect delinquent assessments or in any suit or action brought by declarant,
the association or any owner or class of owners to enforce compliance with the
terms and provisions of the Oregon Condominium Act, the condominium declaration
or bylaws, including all amendments and supplements thereto or any rules or
regulations adopted by the association, the prevailing party shall be entitled
to recover reasonable attorney fees therein and in any appeal therefrom. [1989
c.595 §37; 2001 c.756 §46; 2007 c.409 §29]
     Note: See note under 100.465.
     100.475
Personal liability for assessment; joint liability of grantor and grantee
following conveyance; limitation.      (1) A unit owner shall be
personally liable for all assessments imposed on the unit owner or assessed
against the unit by the association of unit owners.
     (2) Where the purchaser of a unit obtains
title to the unit as a result of foreclosure of the first mortgage or trust
deed, such purchaser, the successors and assigns of the purchaser, shall not be
liable for any of the assessments against such unit or its owner which became
due prior to the acquisition of title to such unit by such purchaser except as
specifically provided otherwise in ORS 100.450. Such unpaid assessments shall
be a common expense of all the unit owners including such purchaser, the
successors and assigns of the purchaser.
     (3)(a) Subject to paragraph (b) of this
subsection, in a voluntary conveyance of a unit, the grantee shall be jointly
and severally liable with the grantor for all unpaid assessments against the
grantor of the unit to the time of the grant or conveyance, without prejudice
to the granteeÂ’s right to recover from the grantor the amounts paid by the
grantee therefor.
     (b) Upon request of an owner or owner’s
agent, for the benefit of a prospective purchaser, the board of directors shall
make and deliver a written statement of the unpaid assessments against the
prospective grantor or the unit effective through a date specified in the
statement, and the grantee in that case shall not be liable for any unpaid assessments
against the grantor not included in the written statement.
     (4) An escrow agent or a title insurance
company providing escrow services or issuing title insurance in conjunction
with the conveyance:
     (a) May rely upon a written statement of
unpaid assessments delivered pursuant to this section; and
     (b) Is not liable for a failure to pay to
the association at closing any amount in excess of the amount set forth in the
written statement. [Formerly 94.208; 1997 c.816 §11; 2003 c.569 §37]
     100.480
Maintaining documents and records; annual financial statement; review of
financial statement by certified public accountant; availability of documents
and records for examination.
(1) An association of unit owners shall retain within this state the documents,
information and records delivered to the association under ORS 100.210 and all
other records of the association for not less than the period specified for the
record in ORS 65.771 or any other applicable law, except that:
     (a) The documents specified in ORS 100.210
(5)(j), if received, must be retained as permanent records of the association.
     (b) Proxies and ballots must be retained
for one year from the date of determination of the vote.
     (2) The association of unit owners shall
keep financial records sufficient for proper accounting purposes. All
assessments shall be deposited in the name of the association in a separate
federally insured account at a financial institution, as defined in ORS
706.008, other than an extranational institution. All expenses of the
association shall be paid from the association account.
     (3) Within 90 days after the end of the
fiscal year, the board of directors shall:
     (a) Prepare or cause to be prepared an
annual financial statement consisting of a balance sheet and income and
expenses statement for the preceding fiscal year; and
     (b) Distribute to each unit owner a copy
of the annual financial statement.
     (4) Subject to section 26, chapter 803,
Oregon Laws 2003, the association of unit owners of a condominium that has annual
assessments exceeding $75,000 shall cause the financial statement required
under subsection (3) of this section to be reviewed within 180 days after the
end of the fiscal year by an independent certified public accountant licensed
in the State of Oregon in accordance with the Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified
Public Accountants.
     (5) The association of unit owners of a
condominium that has annual assessments of $75,000 or less shall cause the most
recent financial statement required by subsection (3) of this section to be
reviewed in the manner described in subsection (4) of this section within 180
days after the board of directors receives the petition requesting review
signed by at least a majority of the owners.
     (6) An association of unit owners subject
to the requirements of subsection (4) of this section may elect, on an annual
basis, not to comply with the requirements of subsection (4) of this section by
an affirmative vote of at least 60 percent of the owners, not including the
votes of the declarant with respect to units owned by the declarant.
     (7)(a) The association shall provide,
within 10 business days of receipt of a written request from an owner, a
written statement that provides:
     (A) The amount of assessments due from the
owner and unpaid at the time the request was received, including:
     (i) Regular and special assessments;
     (ii) Fines and other charges;
     (iii) Accrued interest; and
     (iv) Late payment charges.
     (B) The percentage rate at which interest
accrues on assessments that are not paid when due.
     (C) The percentage rate used to calculate
the charges for late payment or the amount of a fixed charge for late payment.
     (b) The association is not required to
comply with paragraph (a) of this subsection if the association has commenced
litigation by filing a complaint against the owner and the litigation is
pending when the statement would otherwise be due.
     (8)(a) Except as provided in paragraph (b)
of this subsection, the documents, information and records described in
subsections (1) to (3) of this section and all other records of the association
of unit owners must be reasonably available for examination and, upon written
request, available for duplication by a unit owner and any mortgagee of a unit
that makes the request in good faith for a proper purpose.
     (b) Records kept by or on behalf of the
association may be withheld from examination and duplication to the extent the
records concern:
     (A) Personnel matters relating to a
specific identified person or a personÂ’s medical records.
     (B) Contracts, leases and other business
transactions that are currently under negotiation to purchase or provide goods
or services.
     (C) Communications with legal counsel that
relate to matters specified in subparagraphs (A) and (B) of this paragraph.
     (D) Disclosure of information in violation
of law.
     (E) Documents, correspondence or
management or board reports compiled for or behalf of the association or the
board of directors by its agents or committees for consideration by the board
of directors in executive session held in accordance with ORS 100.420 (1).
     (F) Documents, correspondence or other
matters considered by the board of directors in executive session held in
accordance with ORS 100.420 (1).
     (G) Files of individual owners, other than
those of a requesting owner or requesting mortgagee of an individual owner,
including any individual ownerÂ’s file kept by or on behalf of the association.
     (9) The association of unit owners shall
maintain a copy, suitable for the purpose of duplication, of the following:
     (a) The declaration and bylaws, including
amendments or supplements in effect, the recorded plat, if feasible, and the
association rules and regulations currently in effect;
     (b) The most recent annual financial
statement prepared in accordance with subsection (3) of this section;
     (c) The current operating budget of the
association;
     (d) The reserve study, if any, described
in ORS 100.175; and
     (e) Architectural standards and guidelines,
if any.
     (10) The association, within 10 business
days after receipt of a written request by an owner, shall furnish the
requested information required to be maintained under subsection (9) of this
section.
     (11) The board of directors, by resolution,
may adopt reasonable rules governing the frequency, time, location, notice and
manner of examination and duplication of association records and the imposition
of a reasonable fee for furnishing copies of any documents, information or
records described in this section. The fee may include reasonable personnel
costs incurred to furnish the information.
     (12) Subsection (3) of this section first
applies to property submitted to the provisions of this chapter before January
1, 1982, when the board of directors of the association of unit owners receives
a written request from at least one unit owner that a copy of the annual
financial statement be distributed in accordance with subsection (3) of this
section. [Formerly 94.214; 1999 c.677 §51; 2001 c.756 §47; 2003 c.569 §38; 2003
c.803 §22a; 2007 c.340 §2]
     Note: Section 26, chapter 803, Oregon Laws 2003,
provides:
     Sec.
26. The requirements of ORS
100.480 (4) first apply:
     (1) Commencing with the fiscal year
following the turnover meeting for the association of unit owners of a
condominium created prior to January 1, 2004, if the turnover meeting has not
yet occurred on January 1, 2004.
     (2) Commencing with the fiscal year
beginning in calendar year 2004 for the association of unit owners of a
condominium created prior to January 1, 2004, if the turnover meeting has
occurred on or before January 1, 2004.
     (3) Commencing with the fiscal year
following the turnover meeting for the association of unit owners of a
condominium created on or after January 1, 2004. [2003 c.803 §26]
     100.485
Duration and termination of initial management agreements and service and
employment contracts; applicability of federal condominium law. (1) If entered into prior to the turnover
meeting of the condominium, no management agreement, service contract or
employment contract that is directly made by or on behalf of the association,
the board of directors or the unit owners as a group shall be in excess of
three years.
     (2) Any contract or agreement that is
subject to subsection (1) of this section entered into after January 1, 1982,
may be terminated without penalty by the association or the board of directors
upon not less than 30 daysÂ’ written notice to the other party given not later
than 60 days after the turnover meeting.
     (3) The provisions of the Condominium and
Cooperative Abuse Relief Act of 1980 (15 U.S.C. 3601 to 3616), except for 15
U.S.C. 3609 and 3610, shall not apply in the State of
     100.490
Notice to unit owners of intent of association to commence judicial or
administrative proceedings; contents of notice; right of unit owner to opt out. (1) At least 10 days prior to instituting
any litigation or administrative proceeding to recover damages under ORS
100.405 (4)(e)(E), the association of unit owners shall provide written notice
to each affected owner of the associationÂ’s intent to seek damages on behalf of
the owner. The notice shall, at a minimum:
     (a) Be mailed to the mailing address of
each unit or to the mailing addresses designated by the owners in writing to
the association;
     (b) Inform each owner of the general
nature of the litigation or proceeding;
     (c) Describe the specific nature of the
damages to be sought on the ownerÂ’s behalf;
     (d) Set forth the terms under which the
association is willing to seek damages on the ownerÂ’s behalf, including any
mechanism proposed for the determination and distribution of any damages
recovered;
     (e) Inform each owner of the owner’s right
not to have the damages sought on the ownerÂ’s behalf and specify the procedure
for exercising the right; and
     (f) Inform the owner that exercising the
ownerÂ’s right not to have damages sought on the ownerÂ’s behalf:
     (A) Relieves the association of its duty
to reimburse or indemnify the owner for the damages;
     (B) Does not relieve the owner from the
ownerÂ’s obligation to pay dues or assessments relating to the litigation or
proceeding;
     (C) Does not impair any easement owned or
possessed by the association; and
     (D) Does not interfere with the
associationÂ’s right to make repairs to common elements.
     (2) Within 10 days of mailing the notice
described in this section, any owner may request in writing that the
association not seek damages on the ownerÂ’s behalf. If an owner makes such a
request, the association shall not make or continue any claim or action for
damages with regard to the objecting ownerÂ’s unit or interest and shall be
relieved of any duty to reimburse or indemnify the owner for damages under the
litigation or proceeding. [1999 c.677 §57; 2001 c.756 §48]
     Note: 100.490 was added to and made a part of ORS
chapter 100 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
ATTRIBUTES AND
DUTIES OF OWNERSHIP
     100.505
Status and ownership of units.
(1) While the property is submitted to the provisions of this chapter, a unit
may be individually conveyed and encumbered and may be the subject of
ownership, possession or sale and of all types of juridic acts inter vivos or
mortis causa, as if it were sole and entirely independent of the other units of
which they form a part, and the corresponding individual titles and interests
shall be recordable.
     (2) Each unit owner shall be entitled to
the exclusive ownership and possession of the unit of the owner. [Formerly
94.231]
     100.510
Units and common elements distinguished. (1) Unless otherwise provided in the declaration, the walls, floors
and ceilings are the boundaries of a unit.
     (2) All lath, furring, wallboard,
plaster-board, plaster, paneling, tiles, wallpaper, paint, finished flooring
and any other materials constituting any part of the finished surfaces thereof
shall be a part of the unit except those portions of the walls, floors or
ceilings that materially contribute to the structural or shear capacity of the
condominium. All other portions of the walls, floors or ceilings shall be a
part of the common elements.
     (3) The following shall be a part of the
unit:
     (a) All spaces, nonbearing interior
partitions, interior doors and all other fixtures and improvements within the
boundaries of the unit;
     (b) The glazing and screening of windows
and unit access doors; and
     (c) All outlets of utility service lines,
including but not limited to power, light, gas, hot and cold water, heating,
refrigeration, air conditioning and waste disposal within the boundaries of the
unit. [Formerly 94.237; 1999 c.677 §52; 2007 c.410 §14]
     100.515
Interest of units in common elements. (1) Each unit shall be entitled to an undivided interest in the common
elements in the allocation expressed in the declaration. Such allocation shall
be expressed as a fraction or percentage of undivided interest in the common
elements. Except as otherwise provided in this chapter, the allocation of
undivided interest of each unit in the common elements as expressed in a
declaration shall not be altered unless all unit owners having an interest in
the particular common element agree thereto and record an amendment to the
declaration setting forth the altered allocation of each unit having an
interest.
     (2) The sums of the undivided interest in
the common elements shall equal one if stated as fractions or 100 percent if
stated as percentages.
     (3) The undivided interest in the common
elements shall not be separated from the unit to which it appertains and shall
be conveyed or encumbered with the unit even though such interest is not
expressly mentioned or described in the conveyance or other instrument.
     (4) The common elements shall remain
undivided and no unit owner shall bring any action for partition or division of
any part thereof, except as provided in this chapter. Any covenant to the
contrary is void.
     (5) Notwithstanding subsections (1) and
(3) of this section, except where expressly prohibited by the declaration or
bylaws, the right of use of any unit in a limited common element may be
transferred to any other unit. Such transfer shall occur only if the existing
unit owner and all mortgagees of the unit for which the right of use of the
limited common element is presently reserved and the unit owner to whom the
right of use is being transferred agree to and record an amendment to the
declaration setting forth the transfer.
     (6) Notwithstanding subsections (1) and
(3) of this section, in the case where a single unit is originally designed and
constructed to be two or more separate hotel, motel or other similar living
accommodations with separate bathrooms and separate entrances from a hallway,
balcony, staircase or other common element, the owner, or owners, with the consent
of the holder, or holders, of any recorded mortgage or lien on the unit, may
separate such unit into two or more units each having such separate bathrooms
and entrances from such common elements. Such persons may divide between such
separate units the allocation of the common elements assigned to the original
unit on substantially the basis that the square footage of such separated units
bears to the total square footage of the original unit by recording an
amendment to the declaration signed by such owner, or owners, of original unit
together with an amendment to any plat and floor plan of such original unit
recorded pursuant to ORS 100.115 showing the division thereof into such two or
more units. The amendment shall comply with ORS 100.115. Such separated parts
of the original unit shall not be used for any purpose other than the purpose
for which such separable parts were originally designed and constructed and
thereafter have generally been used. [Formerly 94.243]
     100.520
Easement held by units and common elements. (1) Except as otherwise provided in the declaration, each unit shall
have an easement through each other unit and through the common elements for
utility, wiring, heat, plumbing and other service elements, and for reasonable
access required to effectuate and continue proper operation of the condominium.
     (2) Each unit and all common elements
shall have an easement over all adjoining units and common elements for the
purpose of accommodating any present or future encroachment as a result of
engineering errors, construction, reconstruction, repairs, settlement,
shifting, or movement of any portion of the property, or any other similar
cause, and any encroachment due to building overhang or projection. There shall
be valid easements for the maintenance of the encroaching units and common
elements so long as the encroachments shall exist, and except as otherwise
provided in subsection (3) of this section, the rights and obligations of
owners shall not be altered in any way by the encroachment.
     (3) The easement described under
subsection (2) of this section does not relieve a unit owner of liability in
case of willful misconduct of a unit owner or relieve a declarant or any
contractor, subcontractor or materialman of liability for failure to adhere to
the plat and any floor plans recorded pursuant to ORS 100.115.
     (4) The encroachments described in
subsection (2) of this section shall not be construed to be encumbrances
affecting the marketability of title to any unit. [Formerly 94.250; 2001 c.756 §49]
     100.525
Voting or consenting. (1)
Unless otherwise provided in the declaration, each unit of a condominium shall
be entitled to one vote.
     (2) Unless otherwise provided in the
declaration or bylaws:
     (a) An executor, administrator, guardian
or trustee may vote or grant consent with respect to a unit owned or held in a
fiduciary capacity, whether or not the specific right has been transferred to
the fiduciary, if the person satisfies the secretary that the person is the
executor, administrator, guardian or trustee holding the unit in a fiduciary
capacity.
     (b) Whenever a unit is owned by two or
more persons jointly, according to the records of the association:
     (A) Except as provided in this subsection,
the vote of the unit may be exercised by any one of the owners, in the absence
of protest by a co-owner. In the event of a disagreement among the co-owners,
the vote of the unit shall be disregarded completely in determining the
proportion of votes given with respect to the matter.
     (B) A valid court order may establish the
right of co-owners’ authority to vote. [Formerly 94.255; 2001 c.756 §50; 2007
c.409 §32]
     100.530
Allocation of common profits and expenses; liability of unit owner; limitation
on assessments against declarant; deferral of assessments by declarant. (1) Unless otherwise provided in the
declaration, the common profits of the property shall be distributed among, and
the common expenses shall be charged to, the unit owners according to the
allocation of undivided interest of each unit in the common elements.
     (2) No unit owner by the owner’s own
action may claim exemption from liability for contribution towards the common
expenses by waiver by the owner of the use or enjoyment of any of the common
elements or by abandonment by the owner of the ownerÂ’s unit. An owner may not
claim an offset against an assessment for failure of the association to perform
its obligations.
     (3) Subject to subsection (4) of this
section:
     (a) The declarant shall pay assessments
due for operating expenses on all unsold units:
     (A) From the date of conveyance of the
first unit in the condominium; and
     (B) For a staged or flexible condominium,
from the date of recording the applicable supplemental declaration and
supplemental plat recorded pursuant to ORS 100.120.
     (b) From the date of conveyance of the
first unit in the condominium, the declarant shall pay assessments due for
reserves on all unsold units.
     (c) The declarant may defer payment of
accrued assessments for reserves required under ORS 100.175 for a unit until
the date the unit is conveyed. However, the declarant may not defer payment of
accrued assessments for reserves:
     (A) Beyond the date of the turnover
meeting provided for in the bylaws in accordance with ORS 100.210; or
     (B) If a turnover meeting is not held, the
date the owners assume administrative control of the association.
     (d) Failure of the declarant to deposit
the balance due within 30 days after the due date constitutes a violation under
ORS 100.545.
     (e) The books and records of the association
shall reflect the amount the declarant owes for all reserve account
assessments.
     (4)(a) The association shall not assess
units owned by the declarant for additional capital improvements without the
written consent of the declarant as long as:
     (A) In a single stage condominium, the
declarant owns more than two units or five percent of the units, whichever is
greater.
     (B) In a staged or flexible condominium,
the declarant owns more than two units or five percent of the units submitted
to the provisions of this chapter, whichever is greater, or the termination
date has not expired.
     (b) The declarant may waive the declarant’s
right of consent provided in paragraph (a) of this subsection.
     (5)(a) Except with respect to assessments
for reserves required by ORS 100.175, a declaration or bylaws may provide that,
until the turnover meeting, the declarant may elect to defer commencement of
all or part of common expense assessments as to all units in a condominium or
as to all units in a stage of a condominium or as to all units created by a
supplemental declaration and plat pursuant to ORS 100.150.
     (b) If a declarant so elects to defer
commencement of all or part of common expense assessments, declarant shall pay
as they accrue and be responsible for all or part of the common expenses
attributable to the condominium or attributable to the stage of the condominium
or the units and common elements created by such supplemental declaration and
plat for which assessments have been deferred, until assessments commence for
all common expenses.
     (c) The declarant shall give not less than
10 daysÂ’ written notice to all affected unit owners prior to the commencement
of common expense assessments if such a deferral occurs. [Formerly 94.260; 1999
c.677 §53; 2001 c.756 §51]
     100.535
Maintenance and improvement of units. (1) Subject to subsections (5) and (6) of this section and any
additional limitations contained in the declaration or bylaws, a unit owner:
     (a) May make any improvements or
alterations to the unit of the unit owner that do not impair the structural
integrity or mechanical systems of the condominium or lessen the support of any
portion of the condominium.
     (b) After acquiring an adjoining unit or
an adjoining part of an adjoining unit, may submit a written request to the
board of directors for permission to remove or alter any intervening partition
or to create apertures therein, even if the partition in whole or in part is a
common element.
     (2) The board of directors shall approve
the change unless it determines within 45 days that the proposed change will
impair the structural integrity or mechanical systems of the condominium or
lessen the support of any portion of the condominium.
     (3) The board of directors may require the
unit owner, at the expense of the unit owner, to submit an opinion of a
registered architect or registered professional engineer that the proposed
change will not impair the structural integrity or mechanical systems of the
condominium or lessen the support of any portion of the condominium.
     (4) Removal of partitions or creation of
apertures under subsection (1) of this section is not an alteration of
boundaries.
     (5) A unit owner shall make no repair or
alteration or perform any other work on the unit which would jeopardize the
soundness or safety of the property, reduce the value thereof, impair any
easement or hereditament or increase the common expenses of the association
unless the consent of all the other unit owners affected is first obtained.
     (6) Unless otherwise provided in the declaration
or bylaws, a unit owner may not change the appearance of the common elements or
the exterior appearance of a unit without permission of the board of directors
of the association.
     (7) Unless otherwise provided in the
declaration or bylaws, a unit owner is responsible for the maintenance, repair
and replacement of the unit. [Formerly 94.265; 2007 c.410 §15]
     100.540
Use and maintenance of common elements; access for maintenance. (1) Each unit owner may use the common
elements in accordance with the purposes for which they are intended, but may
not hinder or encroach upon the lawful rights of the other unit owners.
     (2) Unless otherwise provided in the
declaration or bylaws:
     (a) The responsibility for maintenance,
repair and replacement of the common elements is the responsibility of the
association of unit owners; and
     (b) The cost of maintenance, repair and
replacement is a common expense of the association.
     (3) The necessary work of maintenance,
repair and replacement of the common elements and additions or improvements to
the common elements shall be carried out only as provided in the bylaws.
     (4) The association of unit owners shall
have the right to have access to each unit as may be necessary for the
maintenance, repair or replacement of the common elements, or to make emergency
repairs therein necessary for the public safety or to prevent damage to the
common elements or to another unit. [Formerly 94.270; 2007 c.410 §16]
     100.545
Compliance with bylaws and other restrictions. Each unit owner and the declarant shall
comply with the bylaws and with the administrative rules and regulations
adopted pursuant thereto, and with the covenants, conditions and restrictions
in the declaration or in the deed to the unit. Failure to comply therewith shall
be grounds for an action maintainable by the association of unit owners or by
an aggrieved unit owner. [Formerly 94.275]
     100.550
Service of process. (1)
Service of process in any action relating to the condominium may be made on:
     (a) If the condominium was submitted to
the provisions of this chapter before October 3, 1989, the person designated in
the declaration to receive service of process;
     (b) The person named as designated agent
in the Condominium Information Report filed with the Real Estate Agency under
ORS 100.250;
     (c) If the association is organized as a
corporation under Oregon law, the registered agent in accordance with ORS
60.111 or 61.086 (1987 Replacement Part); or
     (d) The chairperson or secretary of the
association.
     (2) Except as provided in subsection (4)
of this section, if the association of unit owners of property submitted to the
provisions of this chapter before October 15, 1983, wishes to designate a
person other than the one named in the declaration to receive service of process
in the cases provided in subsection (1) of this section, it shall record an
amendment to the declaration. The amendment shall be certified by the
chairperson and the secretary of the association of unit owners, and shall
state the name of the successor with the successorÂ’s residence or place of
business as required by ORS 100.105 (1)(L), and that the person named in the
amendment was designated by resolution duly adopted by the association of unit
owners.
     (3) Unless prohibited by the declaration
or bylaws, the board of directors of the association of unit owners of property
submitted to the provisions of this chapter after October 15, 1983, may elect
to designate a person other than the one named in the declaration to receive
service of the process in the cases provided in subsection (1) of this section.
After the adoption of a resolution by the board of directors in accordance with
the bylaws, the board of directors, without the need for further action by the
association or approval under ORS 100.110 and 100.135, shall record an
amendment to the declaration. The amendment shall be certified by the
chairperson and the secretary of the association of unit owners, and shall
state the name of the successor with the successorÂ’s residence or place of
business as required by ORS 100.105 (1)(L), that the person named in the
amendment has consented to the designation and that the resolution was duly
adopted by the association of unit owners.
     (4) Subsection (3) of this section applies
to property submitted to the provisions of this chapter before October 15,
1983, if:
     (a) The board of directors of the
association of unit owners receives a written request from at least one unit
owner that subsection (3) of this section applies; or
     (b) The board of directors of the
association of unit owners adopts a resolution in accordance with the bylaws of
the association that subsection (3) of this section applies. [Formerly 94.280;
1995 c.31 §14; 1999 c.677 §54; 2001 c.756 §61; 2007 c.410 §19]
     100.555
Taxation of units; exemptions; uniform appraisal and assessment; rules. (1)(a) Each unit with its allocation of
undivided interest in the common elements shall be considered a parcel of real
property, whether fee simple, leasehold, easement or other interest or
combination thereof, subject to separate assessment and taxation by any taxing
unit in like manner as other parcels of real property. A unit created by a
declaration or supplemental declaration recorded with the recording officer
under ORS 100.100 or 100.120 shall be assessed in the name of the unit owner.
     (b) The common elements may not be
considered a separate parcel for purposes of taxation.
     (2) In determining the real market value
of a unit with its undivided interest in the common elements, the county
assessor may use the allocation of undivided interest in the common elements
appertaining to a unit as expressed in the declaration. Determination of real
market value of a unit based upon a leasehold estate shall be the same as a
unit in fee simple. There shall be no diminution of value by reason of the term
of said lease.
     (3) Exemptions from executions and real
property taxes apply to the owner of each unit or to the individual units, as
the case may be.
     (4) The Department of Revenue shall have
the authority to make rules and regulations prescribing methods best calculated
to secure uniformity according to law in the appraisal and assessment of units
constituting part of a property submitted to the provisions of this chapter. [Formerly
94.285; 1991 c.459 §340; 2001 c.756 §52]
REMOVAL OF
PROPERTY FROM UNIT OWNERSHIP
     100.600
Termination of association or removal of real property by unit owners; consent
of lienholders; recordation; amended plat requirements. (1)(a) Subject to ORS 100.605, the
condominium may be terminated if all of the unit owners remove the property
from the provisions of this chapter by executing and recording an instrument to
that effect and the holders of all liens affecting the units consent thereto or
agree, in either case by instruments duly recorded, that their liens be
transferred to the undivided interest of the unit owner in the property after
the termination. The instrument shall state the interest of each unit owner and
lienholder as determined under ORS 100.610.
     (b) The recording of an instrument of
termination shall vacate the plat but shall not vacate or terminate any
recorded covenants, restrictions, easements or other interests not imposed
under the declaration or bylaws or any easement granted by the plat unless the
instrument of termination otherwise provides.
     (c) Before the instrument of termination
may be recorded, it must be signed by the county assessor for the purpose of
acknowledging that the county assessor has been notified of the proposed
termination.
     (d) The person offering the instrument of
termination for recording shall cause a copy of the recorded instrument,
including the recording information, to be filed with the commissioner. The
county clerk shall promptly provide a certified copy of the recorded instrument
of termination to the county assessor and the county surveyor. Upon receipt of
the instrument of termination, the county surveyor shall make appropriate
annotations, including the date and surveyorÂ’s name or initials, with archival
quality black ink on the surveyorÂ’s copy of the plat and any copies filed under
ORS 92.120. Corrections or changes shall not be allowed on the original plat
once it is recorded with the county clerk.
     (e) Failure to file the copies as required
under paragraph (d) of this subsection shall not invalidate the termination.
     (2) A portion of the property may be
removed from the provisions of this chapter by recording simultaneously with
the recording officer an amendment to the declaration and an amended plat
approved as required under ORS 100.110, 100.115 and 100.135. The amendment to
the declaration shall:
     (a) Include a metes and bounds legal
description of the property being removed;
     (b) Include a metes and bounds legal
description of the resulting boundaries of the condominium after the removal;
     (c) State the interest of each owner and
lienholder in the property being removed;
     (d) State the interest of each unit owner
and lienholder in the condominium after the removal;
     (e) Be approved and executed by all owners
and lienholders and acknowledged in the manner provided for acknowledgment of
deeds; and
     (f) Include a statement by the local
governing body or appropriate department thereof that the removal will not
violate any applicable planning or zoning regulation or ordinance. The statement
may be attached as an exhibit to the amendment.
     (3) The amended plat required under
subsection (2) of this section shall:
     (a) Comply with ORS 100.115 (9) and (10);
     (b) Include a “Statement of Removal” that
the property described on the amended plat is removed from the condominium and
that the condominium exists as described and depicted on the amended plat. Such
statement shall be made by the chairperson and secretary of the association and
acknowledged in the manner provided for acknowledgment of deeds; and
     (c) Include such signatures of approval as
may be required by local ordinance or regulation.
     (4) The tax collector for any taxing unit
having a lien for taxes or assessments shall have authority to consent to such
a transfer of any tax or assessment lien under subsection (1) of this section
or the removal of a portion of the property under subsection (2) of this
section. [Formerly 94.295; 1991 c.763 §29; 1997 c.816 §12; 1999 c.710 §8; 2001
c.756 §62; 2005 c.22 §78]
     100.605
Removal of property from association; repair or removal of property that is
damaged or destroyed. (1) If
90 percent of the unit owners agree that the property is obsolete and shall be
sold, the property shall be considered removed from the provisions of this
chapter.
     (2) Except where the declaration or bylaws
provide to the contrary, if all or part of the property is damaged or
destroyed, then the association of unit owners shall repair, reconstruct or
rebuild the property, unless 60 percent of the unit owners agree that the property
shall not be repaired, reconstructed or rebuilt. If 60 percent of the unit
owners agree that the property shall not be repaired, reconstructed or rebuilt,
the property shall be considered removed from the provisions of this chapter.
     (3) Removal of the condominium or a
portion thereof from the provisions of this chapter under subsections (1) or
(2) of this section shall comply with all of the requirements of ORS 100.600
except that the percent of the owners required to take action shall conform only
to subsections (1) or (2) of this section, as applicable. [Formerly 94.300]
     100.610
Common ownership of property removed from unit ownership; valuation; liens. (1) If the property is removed from the
provisions of this chapter, as provided by ORS 100.600 (1) and 100.605, the
property shall be considered owned in common by all the unit owners. The
respective interest of a unit owner shall be the total of the fair market value
of the unit of the unit owner and common element interest appertaining to such unit
immediately before termination of the condominium. The proportion of any unit
ownerÂ’s interest to that of all unit owners is determined by dividing the fair
market value of that unit ownerÂ’s unit and common element interest by the total
fair market values of all units and common element interests. The fair market
value of each unit and common element interest appertaining to such unit shall
be determined by:
     (a) Agreement of all of the unit owners;
or
     (b) An independent appraiser selected by
the board of directors of the association. The decision of the appraiser shall
be distributed to the unit owners and shall become final unless within 15 days
after the distribution, the board of directors receives written objection from
at least 25 percent of the unit owners. In such event, a new appraiser shall be
selected by the presiding judge for the judicial district in which the property
is located. Such appraiserÂ’s decision shall be final.
     (2) All costs and expenses incurred under
subsection (1) of this section shall be common expenses.
     (3) In the event any part of the property
has been damaged or destroyed, the appraiser may use any available data and
information pertaining to the condominium including, but not limited to,
building plans, prior appraisals and information on file with governmental
authorities.
     (4) Liens affecting any unit shall be
liens, in accordance with the then existing priorities, against the undivided
interest of the unit owner in the property owned in common.
     (5) If a portion of the property is
removed from the provisions of this chapter, as provided by ORS 100.600 (2),
the respective interest of each unit owner and lienholder in the property
removed and the remaining condominium shall be as stated in the amendment to
the declaration in accordance with ORS 100.600 (2)(c) and (d). [Formerly
94.306; 1995 c.781 §37]
     100.615
Action for partition; division of sale proceeds. If the property is removed from the
provisions of this chapter, as provided in ORS 100.600 and 100.605, it shall be
subject to an action for partition at the suit of any unit owner. The net
proceeds of sale, together with the net proceeds of the insurance on the
property, if any, shall be considered as one fund and shall be divided among
the unit owners in proportion to their respective undivided interests as
determined under ORS 100.600 and 100.610 after first paying out of the
respective shares of the unit owners, to the extent sufficient for the purpose,
all liens on the undivided interest in the property owned by each unit owner. [Formerly
94.312]
     100.620
Termination or removal no bar to resubmission. The termination of the condominium or the
removal of a portion of the property from the condominium shall in no way bar
its resubmission. [Formerly 94.318]
DIVIDING OR
CONVERTING UNITS
     100.625
Procedure for dividing or converting units. (1) Subject to the provisions of the declaration and any applicable
law, and upon compliance with this section:
     (a) A unit designated in the declaration
to be used for commercial, industrial or other nonresidential purpose may be
divided by an owner, including the declarant, into two or more units.
     (b) A unit owned by the declarant and
located in a condominium that consists exclusively of units designated in the
declaration to be used for nonresidential purposes, may be divided or converted
into two or more units, common elements or a combination of units and common
elements.
     (2) The owner of a unit to be divided or
converted shall submit to the board of directors of the association of unit
owners a proposed amendment which shall:
     (a) State the purposes of the amendment;
     (b) Assign an identifying number to each
unit created;
     (c) Reallocate the interest in the common
elements and the use of any limited common elements, voting rights, common
expense liability and the right to common profits in the manner prescribed in
the declaration;
     (d) Indicate the means of access for each
unit to common elements; and
     (e) Include any additional provisions
necessary to conform any other provisions of the declaration or bylaws.
     (3) The board of directors shall approve
the proposed amendment unless the board determines within 45 days that the
amendment is inconsistent with the declaration or bylaws, or the division or
conversion will impair the structural integrity or mechanical systems of the
condominium or lessen the support of any portion of the condominium.
     (4) The board of directors may require the
owner of the unit to be divided or converted to submit an opinion of a
registered professional engineer as to whether or not the proposed division or
conversion will impair the structural integrity or mechanical systems of the
condominium or weaken the support of any portion of the condominium. The board
of directors or any agent appointed by the board of directors may supervise the
work necessary to effect the division or conversion. Any expenses incurred
under this section shall be charged to the owner of the unit requesting the
division or conversion.
     (5) The amendment shall be executed by the
owner and mortgagees or trust deed beneficiaries of the affected unit,
certified by the chairperson and secretary of the association and approved and
recorded in accordance with ORS 100.135 (2)(b).
     (6) A plat showing each unit created or
the conversion of a unit to common elements or combination thereof shall be
recorded in accordance with ORS 100.115.
     (7) This section applies only if the
declaration expressly permits and contains:
     (a) A statement of the maximum number of
units into which a unit may be divided under subsection (1) of this section;
     (b) A general description of the nature
and proposed use of any unit or portion of any unit which the declarant may
convert to common elements; and
     (c) A statement of the method to be used
to reallocate interest in the common elements, the use of any limited common
elements, voting rights, common expense liability and right to common profits. [Formerly
94.322; 2003 c.569 §39]
REGULATION OF
SALES; FILING REQUIREMENTS
     100.635
Filing with commissioner; fee.
Except as provided by ORS 100.660 and 100.665, prior to negotiating within this
state for the sale of a condominium unit located in another state, or prior to
the sale of any condominium unit located within this state, the developer shall
file the following information with the Real Estate Commissioner:
     (1) General information on the
condominium, including:
     (a) The name and address of the
condominium and the county in which the condominium is located; and
     (b) The name, address and telephone number
of the developer.
     (2) Two copies of the disclosure statement
for the condominium prepared in accordance with ORS 100.655.
     (3) The documents for and other
information on the condominium as required by ORS 100.640.
     (4) The filing shall be accompanied by a
fee as provided in ORS 100.670. [Formerly 94.331]
     100.640
Filing; required documents and information. The following documents and information shall be submitted to the Real
Estate Commissioner as part of the filing required under ORS 100.635:
     (1) A copy of the proposed or recorded
declaration or supplemental declaration of condominium ownership drawn in
conformance with ORS 100.105 or 100.120, or the law applicable in the state
where the condominium was created;
     (2) A copy of the proposed or recorded
bylaws drawn in conformance with ORS 100.415 or the law applicable in the state
where the condominium was created;
     (3) A copy of the full size plat prepared
in conformance with ORS 100.115 (2) or the law applicable in the state where
the condominium was created, or a copy of the site plan;
     (4) A statement from the county assessor
or county surveyor that the name for the condominium is acceptable under ORS
100.105 (6);
     (5) A copy of a preliminary title report,
title insurance policy or condominium guarantee that has been issued within the
preceding 30 days, including a map showing the location of property described
in the report, policy or guarantee or other evidence of title satisfactory to
the commissioner;
     (6) A copy of all restrictive covenants,
reservations or other documents that may create an encumbrance on or limit the
use of the property other than those restrictions contained in the declaration
or bylaws;
     (7) A copy of the reserve study required
by ORS 100.175 and other sources of information that serve as a basis for
calculating reserves in accordance with ORS 100.175, unless the information is
contained in the disclosure statement;
     (8) The following sample forms:
     (a) Unit sales agreement, including the
notice to purchaser of cancellation rights in accordance with ORS 100.730 and
100.740, the statement required by ORS 93.040 (2) and any warranty required
under ORS 100.185; and
     (b) A receipt for documents required under
ORS 100.725;
     (9) If required by ORS 100.680:
     (a) A copy of the escrow agreement drawn
in conformance with ORS 100.680 and executed by both the declarant and the
escrow agent. If individual escrow agreements or instructions are to be
executed by the purchaser, other than the standard escrow instruction required
by the escrow agent, submit sample form and a letter from the escrow agent,
agreeing to the establishment of the escrows and the procedure set forth in the
sample form; and
     (b) A unit sales agreement drawn in
conformance with ORS 100.680;
     (10) If any of the sales will be by means
of an installment contract of sale:
     (a) A copy of the escrow agreement or
escrow instructions executed by the developer and the escrow agent providing
for the establishment of collection escrows and the deposit of documents in
accordance with ORS 100.720; and
     (b) The proposed installment contract of
sale form, if available;
     (11) Any other documents by which the
purchasers will be bound;
     (12) Any report or disclosure statement
issued for the condominium, by the federal government and any other state; and
     (13) A statement of any additional facts
or information which the developer desires to submit to the commissioner. [Formerly
94.353; 1997 c.816 §13; 2001 c.756 §53; 2007 c.409 §35; 2007 c.410 §20]
     100.645
Filing information to be kept current. (1) The information required by ORS 100.635 shall be kept current by
the developer. Any material change in the information furnished to the Real
Estate Commissioner shall be reported by the developer within 10 days after the
change occurs. The report shall be accompanied by a filing fee as required by
ORS 100.670.
     (2) A developer shall be responsible for
the accuracy of and for providing all information required by ORS 100.635 and
any information required under this section for as long as the developer
retains any unsold interest in the condominium to which the information
pertains. [Formerly 94.342]
     100.650
Service of process on nonresident developer; consent for service on
commissioner; contents of consent; records of service on commissioner. (1) Every nonresident developer, at the time
of filing the information required by ORS 100.635, shall also file with the
Real Estate Commissioner an irrevocable consent that if, in any suit or action
commenced against the nonresident developer in this state arising out of a violation
of any provision of this chapter, personal service of summons or process upon
the nonresident developer cannot be made in this state after the exercise of
due diligence, a valid service may thereupon be made upon the nonresident
developer by service on the commissioner.
     (2) The consent shall be in writing
executed and verified by an officer of a corporation or association, a general
partner of a partnership or by an individual developer and shall set forth:
     (a) The name of the developer.
     (b) The address to which documents served
upon the commissioner are to be forwarded.
     (c) If the developer is a corporation or
unincorporated association, that the consent signed by such officer was
authorized by resolution duly adopted by the board of directors.
     (3) The address for forwarding documents
served under this section may be changed by filing a new consent in the form
prescribed in subsection (2) of this section.
     (4) Service on the commissioner of any
such process shall be made by delivery to the commissioner or a clerk on duty
in any office of the commissioner, duplicate copies of such process, with
duplicate copies of any papers required by law to be delivered in connection
with such service.
     (5) When the commissioner is served with
any such process, the commissioner shall immediately cause one of the copies
thereof, with any accompanying papers, to be forwarded by registered mail or by
certified mail with return receipt to the developer at the address set forth in
the consent.
     (6) The commissioner shall keep a record
of all processes, notices and demands served upon the commissioner under this
section, and shall record therein the time of such service and the action with
reference thereto. [Formerly 94.348; 1991 c.249 §12]
     100.655
Disclosure statement; contents; disclosure statement from other state; declarant
liability limited. (1) The
disclosure statement submitted to the Real Estate Commissioner as part of a
filing under ORS 100.635 shall contain the following information:
     (a) The name and address of the
condominium, and the name, address and telephone number of the developer;
     (b) A general narrative description of the
condominium stating the total number of units, a description of the types of
units, the total number of units that may be included in the condominium
pursuant to ORS 100.105 (2), and a precise statement of the nature of the
interest which is being offered;
     (c) If at the time of filing:
     (A) The construction of the project is not
completed, general disclosure of the status of construction and the actual or
scheduled dates of completion of buildings, recreational facilities and other
common elements, including a statement describing any recreational facilities
or improvements to the common elements that the developer reserves the right to
develop or promises to develop, or a statement that there are no such
facilities or improvements; or
     (B) The construction of the project is
completed, the actual dates of completion of buildings, recreational facilities
and other common elements if known by the developer;
     (d) The nature and significant terms of
any financing offered by the developer to purchasers of the condominium units;
     (e) Copies of any warranties for
structural elements and mechanical and other systems or a brief description of
such warranties;
     (f)(A) A current or projected budget of
the association of unit owners for the operation and maintenance and any other
common expenses of the condominium, including an amount for a subsidy of the
association by the declarant, if any, by a contribution of funds, goods or
services;
     (B) A brief statement of the method of
determining liability for common expenses and the right to common profits; and
     (C) The following notice in at least
12-point type that is either all capitals or boldface:
______________________________________________________________________________
NOTICE TO PROSPECTIVE PURCHASERS
THE PROJECTION OF
THE BUDGET OF THE ASSOCIATION OF UNIT OWNERS FOR THE OPERATION AND MAINTENANCE
AND OTHER COMMON EXPENSES OF THE CONDOMINIUM IS ONLY AN ESTIMATE, PREPARED WITH
DUE CARE.
______________________________________________________________________________
     (g) If a provision for reserves under ORS
100.175 is included in the budget disclosed under paragraph (f) of this
subsection:
     (A) A statement identifying the
information constituting the basis for the reserve assessment under ORS
100.175; and
     (B) A statement that the information
constituting the basis for the reserve assessment identified under ORS 100.175
is available for review upon written request to the declarant or the designated
person, unless included in the disclosure statement;
     (h) In the case of a conversion
condominium, a statement of:
     (A) The present condition of all
structural components and major mechanical and utility installations in the
condominium, including the approximate date of construction and a reasonable
estimate of the remaining useful life of, at a minimum, the roof, siding,
plumbing, electrical, HVAC system, asphalt, sidewalks and decks;
     (B) Whether or not the assessment of
conditions under subparagraph (A) of this paragraph, which shall be in at least
12-point type that is all capitals or boldface, was prepared by a licensed
engineer, architect or home inspector; and
     (C) The statutory procedure required to
create a conversion condominium;
     (i) A cross-reference to the portions of
the declaration, any supplemental declaration and bylaws containing the general
power and authority of the board of directors, the method of apportionment of
voting rights among the members of the association of unit owners and a
statement of the nature and extent of control of the board of directors
retained by the developer by voting rights or otherwise;
     (j) A list of the documents by which
purchasers may be bound, including the declaration, bylaws, ground leases,
management agreement, easements, covenants, restrictions and conditions;
     (k) A statement of whether there are any
restrictions on alienation of units or any use or occupancy restrictions, such
as limitations on residential or commercial use, pets, age of occupants or
number of occupants, and a cross-reference to those portions of the
declaration, any supplemental declaration, bylaws or any other document
containing the principal provisions relating to those restrictions; and
     (L) If the condominium is a staged
condominium:
     (A) Whether the declarant reserves the
right to annex additional property to the condominium pursuant to ORS 100.125
and, if so:
     (i) The maximum number of units;
     (ii) The date after which annexation right
terminates;
     (iii) The description of additional common
elements declarant reserves right to annex to the property and whether such
common elements might substantially increase the proportionate amount of common
expenses by current unit owners; and
     (iv) The effect of annexation of
additional units on allocation of interest in the common elements and voting
rights.
     (B) If the condominium or any stage being
filed under ORS 100.635 contains or may contain any variable property, a
statement of the rights reserved by the declarant under ORS 100.150 (1) and the
results specified in ORS 100.155 if such rights are not exercised.
     (2) In lieu of the disclosure statement
required under subsection (1) of this section, the commissioner may accept a
disclosure report issued or approved by another state or governmental agency.
     (3) No disclosure statement is required
for condominiums described in ORS 100.660.
     (4) The declarant is not liable to the
association or the owners with respect to a statement of condition or estimate
of useful life contained in the disclosure statement if:
     (a) The declarant did not have actual
knowledge of any inaccuracies in the statement at the time of delivery of the
disclosure statement to the purchaser; and
     (b) The declarant relied upon reports
prepared by licensed engineers or architects in making the statement or, if the
condominium has four or fewer units, reports prepared by licensed engineers,
architects or home inspectors. [Formerly 94.351; 1997 c.816 §14; 1999 c.677 §55;
2001 c.756 §54; 2003 c.569 §40; 2007 c.409 §36]
     100.660
Nonresidential condominium or security filing; contents. A developer of a condominium located in this
state, that consists exclusively of units to be used for nonresidential
purposes or that consists of units to be offered for sale as a security under
ORS 59.005 to 59.451, 59.710 to 59.830, 59.991 and 59.995, shall submit to the
Real Estate Commissioner a filing that consists of:
     (1) General information on the condominium
including:
     (a) The name and address of the
condominium and the county in which the condominium is located; and
     (b) The name, address and telephone number
of the developer and any agent of the developer; and
     (2) The following documentation:
     (a) The original executed declaration or
supplemental declaration and a copy thereof, drawn in conformance with ORS
100.105 and 100.120, if applicable;
     (b) The original executed bylaws, and a
copy thereof, drawn in conformance with ORS 100.415;
     (c) A copy of the full size plat prepared
in conformance with ORS 100.115;
     (d) A copy of a current preliminary title
report or title insurance policy or condominium guarantee that has been issued
within the preceding 30 days, including a map showing the location of property
described therein, or other evidence of title satisfactory to the commissioner;
     (e) A copy of all restrictive covenants,
reservations or other documents containing provisions that may create an
encumbrance on or limit the use of the property other than those restrictions
contained in the declaration, supplemental declaration or bylaws; and
     (f) A statement from the county assessor
that the name for the condominium is acceptable under ORS 100.105 (5). [Formerly
94.356]
     100.665
Exemption to certain disclosure and notice requirements. A vendor under a land sale contract, a
mortgagee of a mortgage or a beneficiary of a trust deed who becomes a
developer by reason of acquiring a unit or units in a condominium through
foreclosure of its lien or acceptance of a deed in lieu thereof, is not required
to submit a filing to the Real Estate Commissioner under ORS 100.635, or to
distribute a disclosure statement under ORS 100.705 or provide the notice to
purchaser required under ORS 100.740 if the vendor, mortgagee or beneficiary
sells, in a single sale, all of the units so acquired to a developer who agrees
to comply with the provisions of ORS 100.635 and 100.705 before negotiating a
sale of the unit or units to others. [1989 c.595 §46]
     100.670
Fees; hourly rate; deposit.
(1) A developer or other person required to file materials or information with
the Real Estate Commissioner under ORS 100.005 to 100.910 shall pay to the
commissioner a fee as required under subsections (2) and (3) of this section
for the review, approval and handling of the filings by the commissioner at the
time of the initial filing with the commissioner.
     (2) A fee charged by the commissioner
under subsection (1) of this section shall be determined by the commissioner to
cover the costs of the commissionerÂ’s review, approval or revision activity.
The fee shall be based upon an hourly rate that is subject to prior approval of
the Oregon Department of Administrative Services and a report to the Emergency
Board prior to adopting the fee and shall be within the budget authorized by the
Legislative Assembly as that budget may be modified by the Emergency Board.
     (3) The commissioner shall collect a
deposit of $100 from a developer at the time of submitting a filing described
in subsection (1) of this section. The amount of the deposit shall be deducted
from the final fee computed as provided in subsection (2) of this section. [Formerly
94.354; 1991 c.703 §3]
     100.675
Inventory; review; approval; timelines. (1)(a) Upon receipt of an informational filing, submitted as required
under ORS 100.005 to 100.910 and the prescribed filing fee, within five working
days after receipt of the filing the Real Estate Commissioner shall inventory
the filing and acknowledge whether the filing contains all required documents
and information. If the filing contains all required documents and information,
the commissioner shall issue a notice acknowledging their receipt.
     (b) If the filing under paragraph (a) of
this subsection does not contain the required documents and information, the
commissioner shall issue a notice of receipt of a partial filing, a statement
itemizing the required documents and information that must be submitted, and a
statement that the filing will not be acknowledged as containing all required
documents and information until the itemized documents and information have
been received and inventoried by the commissioner.
     (c) Within 45 days from the date that the
filing has been inventoried and acknowledged as containing all the required
documents and information, the commissioner shall review the filing to
determine whether the documents and information submitted conform to the
statutory requirements of ORS 100.005 to 100.910 and, upon determination of
their conformity shall adopt and issue the disclosure statement filed under ORS
100.655.
     (2) For any document filed with the
commissioner that requires the commissionerÂ’s approval under ORS 100.005 to
100.910, the commissioner shall issue a notice of receipt for the filing within
five days following receipt by the commissioner of the document. The document
shall be considered approved by the commissioner on the expiration of 45 days
following issuance by the commissioner of the notice of receipt, unless within
the 45-day period:
     (a) The commissioner notifies the person
making the filing in writing of the portions of the document that do not comply
with the applicable requirements of ORS 100.005 to 100.910; or
     (b) The commissioner notifies the person
making the filing in writing that the document complies with the applicable
requirements of ORS 100.005 to 100.910 and is approved. [Formerly 94.357]
     100.680
Escrow; sales agreement; requirements. (1) Unless the developer of a condominium has complied with
subsections (2) and (3) of this section, the developer and a purchaser may not
enter into a unit sales agreement before the recording of the declaration or
supplemental declaration and plat under ORS 100.115 or, if the condominium is
located outside of this state, before the condominium has been created under
the laws of the jurisdiction within which the condominium is located.
     (2) Any purchaser’s funds, the unit sales
agreement, any notes or security documents and any loan commitments shall be
placed in an escrow located within this state with a person or firm authorized
under ORS 696.505 to 696.582. The escrow instructions may not allow
distribution of the purchaserÂ’s funds until the declaration or any applicable
supplemental declaration is recorded and the legal title or other interest
bargained for has been transferred to the purchaser as provided in the unit
sales agreement. If any funds of the purchaser are invested, the funds shall be
invested in federally insured accounts or other investments approved by the
Real Estate Commissioner. If the developer defaults under the unit sales agreement,
the purchaserÂ’s funds held in escrow and all income earned from investment of
the funds held in escrow shall be returned.
     (3) A unit sales agreement shall contain:
     (a) The unit designation;
     (b) The full amount of the purchase price,
including the amount and form of earnest money paid by the purchaser;
     (c) The name and address of the escrow
agent to hold the purchaserÂ’s funds and a reference to the escrow instructions
controlling the escrow;
     (d) If the purchaser’s funds are to be
invested, the name of the financial institution where the funds will be
deposited and to whom any interest earnings will accrue under all possible
circumstances;
     (e) The date of closing with any
conditions and requirements of closing;
     (f) The closing procedure;
     (g) Any authority of the developer to
terminate the sale and, in the case of termination, any forfeiture provisions;
     (h) If the developer specifies any
contingency, the date other than closing when all purchaserÂ’s funds and
interest earnings will be returned to the purchaser if the contingency is not
met;
     (i) Provision that the purchaser will
recover any funds paid to the developer and any interest earnings upon default
by the developer;
     (j) Any rights reserved by the developer
to modify the declaration, any supplemental declaration, bylaws, plat or other
documents by which the purchaser is or will be bound;
     (k) Notice to the purchaser of
cancellation rights under ORS 100.730 and 100.740;
     (L) For the sale of newly constructed
units, any express warranty required under ORS 100.185; and
     (m) Any other provisions deemed necessary
by the developer and purchaser.
     (4) In lieu of the requirements of
subsection (2) of this section, the commissioner may approve any alternative
requirement or method which the commissioner finds will assure the same
protection to the purchaser as the protection provided by the escrow. [Formerly
94.358]
INSPECTION OF
CONDOMINIUM; DISCLOSURE STATEMENT
     100.700
Inspection of condominium; report in disclosure statement. The Real Estate Commissioner may make an
on-site inspection of any condominium and require a report of the commissionerÂ’s
findings from such inspection to be included in the disclosure statement for
use in the sale of the condominium. [Formerly 94.359]
     100.705
     (2) A copy of the disclosure statement for
a condominium shall be given to the prospective purchaser of a unit in the
condominium by the developer or an agent of the developer, not later than the
date the unit sales agreement is fully executed by all parties. The developer
shall take a receipt from the prospective purchaser upon delivery of a copy of
the disclosure statement, and such receipts shall be kept on file within this
state in the possession of the developer or the agent of the developer subject
to inspection by the Real Estate Commissioner for a period of three years from
the date the receipt is taken.
     (3) The disclosure statement shall not be
used for advertising purposes unless it is used in its entirety. No portion of
the disclosure statement shall be underscored, highlighted, italicized or
printed in larger or heavier type than the balance of the statement unless the
true copy of the statement so emphasizes such portion.
     (4) The commissioner may furnish at cost
copies of the disclosure statement for the use of developers.
     (5) Violations of this section shall be
subject to the provisions of ORS 646.605 to 646.656, in addition to other
sanctions provided by law. [Formerly 94.384]
     100.710
Inspection deposit. When an
on-site inspection under ORS 100.700 is to be made of a condominium situated in
the State of
REQUIREMENTS FOR
     100.720
Conditions prerequisite to sale. (1) No condominium unit shall be sold by a developer by means of a
land sale contract unless a collection escrow is established within this state
with a person or firm authorized to receive escrows under the laws of this state
and all of the following are deposited in the escrow:
     (a) A copy of the title report or
abstract, as it relates to the property being sold.
     (b) The original sales document or a true
copy thereof relating to the purchase of the condominium unit.
     (c) A commitment to give a partial release
for the condominium unit being sold from the terms and provisions of any
blanket encumbrance. The commitment shall be in a form satisfactory to the Real
Estate Commissioner.
     (d) A document in good and sufficient form
transferring the interest purchased.
     (2) The developer shall submit written
authorization allowing the commissioner to inspect all escrow deposits
established pursuant to subsection (1) of this section.
     (3) In lieu of the procedures provided in
subsection (1) of this section, the developer shall conform to such alternative
requirement or method which the commissioner may deem acceptable to carry into
effect the intent and provisions of this section. [Formerly 94.400]
     100.725
Documents prerequisite to execution of sale agreement and conveyance of unit. (1) Before the unit sales agreement is fully
executed by all parties, the developer shall deliver to the purchaser a copy of
the declaration and bylaws of the condominium and any supplements and
amendments thereto affecting the unit.
     (2) When the unit sales agreement is fully
executed by all parties, the developer shall deliver to the purchaser a copy of
the fully executed agreement which contains the “Notice to Purchaser” required
by ORS 100.740.
     (3) The developer shall deliver to the
purchaser prior to the conveyance of the unit by deed, lease or contract any
ground leases, leases with the association for recreation or parking facilities
and escrow instructions applying to the transaction.
     (4) The developer shall take a receipt
from the purchaser upon the delivery of the documents referred to in subsection
(1) of this section, and such receipts shall be kept on file within this state
by the developer or the agent of the developer subject to inspection by the
Real Estate Commissioner for a period of three years from the date the receipt
is taken. [Formerly 94.406]
     100.730
Cancellation of sale of unit; notice to seller; return of payments and
reconveyance; extinguishment of encumbrances; waiver prohibited; disclaimer of
notice; applicability. (1) A
purchaser of a condominium unit may cancel for any reason the sale of a
condominium unit from a developer or any contract, agreement or evidence of
indebtedness associated with the sale of the condominium unit, within five
business days (excluding Saturdays and holidays) after the date on which the
latest of the following events occurs:
     (a) The signing by the purchaser of the
unit sales agreement;
     (b) The signing by the purchaser of the
receipt required under ORS 100.705 (2) upon the delivery of the disclosure
statement, if any; or
     (c) The signing by the purchaser of the
receipt required under ORS 100.725 (4) upon delivery of a copy of the documents
specified in ORS 100.725 (1).
     (2) Cancellation, under subsection (1) of
this section, occurs when the purchaser of an interest gives written notice to
the developer at the developerÂ’s address stated in the notice to purchaser
required under ORS 100.740 (1).
     (3) A notice of cancellation given by a
purchaser of a condominium unit need not take a particular form and is
sufficient if it indicates by any form of written expression the intention of
the purchaser not to be bound by the contract or evidence of indebtedness.
     (4) Notice of cancellation, if given by
mail, shall be given by certified mail, return receipt requested, and is
effective on the date that such notice is deposited with the United States
Postal Service, properly addressed and postage prepaid.
     (5) Upon receipt of a timely notice of
cancellation, the developer shall immediately return to the purchaser all
payments received from the purchaser. In case of payments made by check, the
developer shall not be required to return the payment to a purchaser until the
check is finally paid as provided in ORS 74.2130. Upon return of all such
payments the purchaser shall immediately transfer rights in the interest to the
developer, not subject to any encumbrance created or suffered by the purchaser.
In the case of cancellation by a purchaser of any evidence of indebtedness, the
purchaser shall return the purchaserÂ’s copy of the executed evidence of
indebtedness to the developer, and the developer shall cancel the evidence of
indebtedness. Any encumbrances against the purchaserÂ’s interest in the unit
arising by operation of law from an obligation of the purchaser existing prior
to transfer of the interest to the purchaser shall be extinguished by the
reconveyance.
     (6) Except as otherwise provided in ORS
100.735, no act of a purchaser shall be effective to waive the right of
cancellation granted by subsection (1) of this section. A developer may require
that a purchaser of a condominium unit execute and deliver to the developer,
after the expiration of the cancellation period, a signed statement disclaiming
any notice of cancellation that may have been made by the purchaser prior to
expiration of the cancellation period granted under subsection (1) of this
section and that may have been timely and properly done under this section
whether or not the statement has been received by the developer. In case of
execution of any such statement by the purchaser, the statement shall be
sufficient to rescind the notice of cancellation.
     (7) A purchaser’s right to cancel under
subsection (1) of this section terminates at the time of the closing of the
unit purchase transaction.
     (8) This section shall not apply to:
     (a) The sale of a unit in a condominium
used or intended to be used solely for commercial or industrial purposes;
     (b) The sale of a condominium unit
conducted by public auction; or
     (c) A sale described in ORS 100.665. [Formerly
94.412]
     100.735
Waiver of right to cancel.
(1) A purchaser may waive the right to cancellation granted under ORS 100.730
(1) after the unit sales agreement is fully executed by all parties. The waiver
shall be in writing and dated and shall include a notice that by signing such
statement the purchaser waives only the right of cancellation granted under ORS
100.730 (1) and no other right.
     (2) No provision which obligates a
purchaser to waive or limit the right of cancellation granted under ORS 100.730
(1) shall be included in the unit sales agreement or any other agreement
associated with the sale. [Formerly 94.418]
     100.740
Notice to purchaser of cancellation rights; form. (1) Subject to ORS 100.730 (8), a unit sales
agreement shall contain, either upon the first page or upon a separate sheet
attached to such first page, the following notice in at least 12-point type
that is all capitals or boldface:
______________________________________________________________________________
NOTICE TO PURCHASER
(RIGHT OF CANCELLATION)
     BY SIGNING A UNIT SALES AGREEMENT YOU ARE
INCURRING A CONTRACTUAL OBLIGATION TO PURCHASE AN INTEREST IN A CONDOMINIUM.
HOWEVER, YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT FOR ANY REASON FOR FIVE
BUSINESS DAYS (EXCLUDING SATURDAYS AND HOLIDAYS) AFTER WHICHEVER OF THE
FOLLOWING IS LAST TO OCCUR:
     (1) SIGNING BY THE PURCHASER OF THE UNIT
SALES AGREEMENT;
     (2) SIGNING BY THE PURCHASER OF THE
RECEIPT FOR THE DISCLOSURE STATEMENT, IF ANY; OR
     (3) SIGNING BY THE PURCHASER OF THE
RECEIPT FOR A COPY OF THE CONDOMINIUM DECLARATION AND BYLAWS AND ANY AMENDMENTS
OR SUPPLEMENTS THERETO AFFECTING THE UNIT.
TO CANCEL THIS
AGREEMENT, YOU MUST GIVE WRITTEN NOTICE TO THE DEVELOPER OR THE AGENT OF THE
DEVELOPER AT THE FOLLOWING ADDRESS:
     __________________
     __________________
     __________________
     __________________
     __________________
(SUGGESTED PROCEDURE)
     BEFORE EXECUTING THIS AGREEMENT, OR BEFORE
THE CANCELLATION PERIOD ENDS, YOU SHOULD DO THE FOLLOWING:
     (1) CAREFULLY EXAMINE THE DISCLOSURE
STATEMENT, IF ANY, ISSUED BY THE REAL ESTATE COMMISSIONER ON THE CONDOMINIUM
AND ALL ACCOMPANYING INFORMATION DELIVERED BY THE DEVELOPER.
     (2) INQUIRE OF YOUR LENDER WHETHER YOU CAN
GET ADEQUATE FINANCING ON AN ACCEPTABLE BASIS.
     (3) INQUIRE OF THE DEVELOPER AND THE LENDER
WHAT THE AMOUNT OF THE CLOSING COSTS WILL BE.
______________________________________________________________________________
     (2) Except as provided in ORS 100.665, a
copy of the notice set forth in subsection (1) of this section shall be given
to each purchaser at the time of or immediately following the purchaserÂ’s
signing of the unit sales agreement, for the use of the purchaser. [Formerly
94.424; 2001 c.756 §55; 2003 c.569 §41]
     100.745
Escrow documents required of successor to vendorÂ’s interest. (1) A purchaser of a vendorÂ’s interest or a
holder of an encumbrance secured by a vendorÂ’s interest in an installment
contract of sale for which an escrow has been established pursuant to ORS
100.720 shall deposit in the escrow any instruments necessary to assure that
the contract vendee can obtain the legal title bargained for upon compliance with
the terms and conditions of the contract.
     (2) A developer who has sold interests in
a condominium under an installment contract of sale shall not dispose of or
subsequently encumber the vendorÂ’s interest therein unless the terms of the
instrument of disposition or the encumbrance provide the means by which the
purchaser or holder of the encumbrance will comply with subsection (1) of this
section. [Formerly 94.431]
     100.750
Inspection of records.
Records of the sale of any condominium unit shall be subject to inspection by
the Real Estate Commissioner and shall be made available to the commissioner in
PROHIBITED ACTS
     100.770
Fraud and deceit prohibited.
No developer or agent of a developer shall, in connection with the sale of a
condominium unit, directly or indirectly:
     (1) Employ any device, scheme or artifice
to defraud;
     (2) Make any untrue statement of a
material fact or fail to state a material fact necessary to make the statement
made, in the light of the circumstances under which it is made, not misleading;
     (3) Engage in any act, practice or course
of business which operates or would operate as a fraud or deception upon any
person;
     (4) Issue, circulate or publish any
prospectus, circular, advertisement, printed matter, document, pamphlet,
leaflet or other literature, including a public report issued pursuant to ORS
100.700, which contains an untrue statement of a material fact or fails to
state a material fact necessary in order to make the statements therein made,
in the light of the circumstances under which they are made, not misleading;
     (5) Issue, circulate or publish any
advertising matter or make any written representation, including a public
report issued pursuant to ORS 100.700, unless the name of the person issuing,
circulating or publishing the matter or making the representation is clearly
indicated; or
     (6) Make any statement or representation,
or issue, circulate or publish any advertising matter containing any statement
to the effect that the condominium has been in any way approved or indorsed by
the Real Estate Commissioner. [Formerly 94.448]
     100.775
False or misleading advertising prohibited; liability. It shall be unlawful for any developer or
agent of a developer, who with intent, directly or indirectly, to sell a
condominium unit, to authorize, use, direct or aid in the publication,
distribution or circularization of any advertisement, radio broadcast or
telecast concerning the condominium, which contains any statement, pictorial
representation or sketch which is false or misleading. Nothing in this section
shall be construed to hold the publisher or employee of any newspaper, any job
printer, broadcaster or telecaster liable for any publication referred to in
this chapter unless the publisher, employee, printer, broadcaster or telecaster
has actual knowledge of the falsity thereof or has an interest in the
condominium advertised or the sale thereof. [Formerly 94.454]
     100.780
Waiver of legal rights void.
Any condition, stipulation or provision in any sales contract or lease, or in
any other legal document, binding any purchaser or lessee to waive any legal
rights under this chapter against the developer shall be deemed to be contrary
to public policy and void. [Formerly 94.460]
     100.785
Blanket encumbrance prohibited.
(1) Subject to the provisions of ORS 100.720, a condominium unit may not be
conveyed by a developer subject to a blanket encumbrance.
     (2) Notwithstanding subsection (1) of this
section, the developer shall conform to an alternative requirement or method
which the Real Estate Commissioner may deem acceptable to afford a purchaser
the protection provided by the prohibition in subsection (1) of this section. [Formerly
94.465; 2001 c.756 §56]
ENFORCEMENT
     100.900
Civil penalty. (1) In
addition to any other penalties provided by law, the Real Estate Commissioner
may impose a civil penalty for violation of the provisions of ORS 100.015,
100.635 to 100.730 and 100.740 to 100.780 or any of the rules adopted thereunder.
No civil penalty shall exceed $1,000 per violation.
     (2) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
     (3) All penalties recovered shall be paid
into the State Treasury and credited to the General Fund. [Formerly 94.470;
1991 c.734 §6]
     100.905
Cease and desist order; injunction. (1) Whenever the Real Estate Commissioner finds that any developer or
other person is violating any of the provisions of ORS 100.015, 100.635 to
100.730 and 100.740 to 100.780 or the rules adopted thereunder or of the
alternative requirements of the commissioner prescribed pursuant to ORS 100.720
(3), the commissioner may order the persons to desist and refrain from
violating such provisions or requirements, or from the further sale of condominium
units.
     (2) Whenever the commissioner finds that
any developer or other person is violating, or has violated or is about to
violate, any of the provisions of ORS 100.015, 100.635 to 100.730 and 100.740
to 100.780 or the rules adopted thereunder or the alternative requirements of
the commissioner prescribed pursuant to ORS 100.720 (3), the commissioner may
bring proceedings in the circuit court within the county in which the violation
or threatened violation has occurred or is about to occur, or in the county
where such person, firm or corporation resides or carries on business, in the
name of and on behalf of the people of the State of Oregon against such person,
firm or corporation, and any other person or persons concerned in or in any way
participating or about to participate in such violation, to enjoin such person,
firm or corporation or any other person from continuing such violation or
engaging therein or doing any act or acts in furtherance thereof, and to apply
for the appointment of a receiver or conservator of the assets of the defendant
where such appointment is appropriate. [Formerly 94.475]
     100.910
Use of fees. The moneys
received under this chapter shall be paid into the State Treasury and placed to
the credit of the General Fund in the Oregon Real Estate Department Account. [Formerly
94.480]
CRIMINAL PENALTIES
     100.990
Criminal penalties. Subject
to ORS 153.022, any person who violates any of the provisions of ORS 100.015,
100.635 to 100.730 and 100.740 to 100.780 or any rules adopted thereunder or
any alternative requirements of the Real Estate Commissioner prescribed
pursuant to ORS 100.720 (3), shall be punished by a fine not exceeding $10,000,
or by imprisonment in the custody of the Department of Corrections for a period
not exceeding three years, or in the county jail not exceeding one year, or by
both such fine and imprisonment. [Formerly 94.991; 1999 c.1051 §300]
_______________
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